Toronto, ON -- (SBWIRE) -- 01/09/2017 -- Many people are not able to obtain mortgages in Burlington due to a low credit score. This means they have not been able to access the equity they've built up in their home. However, Hamilton Mortgage Office is now able to provide second mortgages in Burlington, Ontario.
A home equity loan is similar to a mortgage in that the loan is secured by a piece of real estate. The loan is paid back in instalments as agreed with the lender. The amount that may be borrowed with a home equity loan is determined by the difference between the value of a home and the value of pre-existing mortgages owed to lenders. If one fails to pay the loan, the property can be taken away from the owner in order to recover the balance owed to the lender.
Home equity loans are not limited to just one use. They can be used on various things some of which include home renovations, investments, debt consolidation and education.
The funds can be used to upgrade a home by renovating it. This increases the value of the property hence making the renovation a wise investment in case the property will be sold in the future.
If a business opportunity presents itself and one is short of funds to invest, getting a home equity loan can be the solution. The loan can be invested in any kind of business provided it will be profitable.
If one has debts and does not have the finances to pay back in due time, one can apply for a home equity loan to consolidate the debt. It is possible to consolidate any debts including credit card debt and others.
If the home equity is large enough, it can pay for post-secondary education. This is also an investment since a good education enables one to get a well-paying job.
There are many private lenders in Burlington that offer home equity loans. These private lenders are willing to offer home equity loans to many people despite a poor credit rating. Even those who do not qualify for loans in banks can qualify for loans from private lenders. One of the most important things private lenders consider is the home to value ratio. It is calculated by dividing the value of existing mortgages by the value of the home. Most private lenders accept a ratio of up to 85%.
When applying for a home equity loan, it is better to go to private lenders rather than banks for various reasons. Private lenders do not put as much emphasis on credit scores as banks do. They are more interested in the loan to value ratio. Private lenders use less time to process loans while banks may take more than a month before they dispense the funds to the borrower. The lending requirements for private lenders are not rigid and are negotiable. Banks have more rigid mortgage requirements.
Hamilton Mortgage Office
Address: 100 Consilium Pl. Suite 200 Toronto, ON, M1H 3E3, Canada