Toronto, ON -- (SBWIRE) -- 01/19/2017 -- Many homeowners are in need of additional money in order to pay off debt, renovate the house or invest a business. Whitby Mortgage Brokers has recently announced that they offer home equity loans which allows people to access to the money by using their home as security for the loan.
The amount that may be borrowed depends on the amount of equity in a homeowner's property. The difference between the secured debts on a home and the value of the home is the amount of home equity. For example, if a home is valued at $500,000, and its mortgage balance is $300,000, then the home would have $200,000 worth of equity. Home equity loans allow people access to money at better rates than credit cards and payday loans.
Generally, home equity is created when people pay down their mortgage. Each mortgage payment goes to paying both the mortgage's interest and principle. The more the mortgage's principal that is paid, the more the value of the home's equity increases.
A home equity loan in Ontario typically takes the form of a registered second mortgage. A second mortgage can be used in various ways and common uses include investments, paying college or university tuition, funding renovations or paying off credit cards.
Using home equity loans to create other streams of revenue is also smart way to use the money. A person could buy investment properties to flip or rent out to make money in real estate. It's also possible to invest in mutual funds or stocks in order to make money using the stock market. The borrower can start a business and start a new career.
A home equity loan can even be used to pay off student loans, credit card debts or auto loans. Having a clean credit file releases stress, eliminates the harassing debt collector calls and opens up other financial opportunities. For people who decide to use a loan to pay off bills, its possible to save more by starting with the highest interest debt first.
Whitby Mortgage Brokers does not base loan approval on credit status. Instead, they approve their home equity loans Whitby based on the amount of equity that is in the home. They can lend on any type of property as long as the loan to value ratio is no more than 85%.
Whitby Mortgage Brokers specialises in private lending, which offers several benefits over using banks. First and foremost, private lenders are not confined to the strict lending regulatory requirements that banks are. Instead, private mortgage lenders invest their own money to give these loans. Many applicants for loans are approved right away.
Whitby Mortgage Brokers
Address: 100 Consilium Pl. Suite 200 Toronto, ON, M1H 3E3, Canada