Home Equity Loan

What is a Home Equity Loan?

The term "Home Equity Loan" refers to a large segment of mortgage loan options that allows for more flexibility in mortgage qualification.

This flexibility can extend from - accepting lower Credit, lower income, different forms of income, flexibility in proving income, extended ratios, amortization and property type and location to name a few, which makes getting approved a fairly simple process.

Home Equity Loans, the truest and fairest form of asset based lending, enables Canadian homeowners to borrow against the equity they've built up in their homes. The amount they can borrow is based on the difference between the value of their home and how much they still owe on their mortgage.

A home equity loan can be approved using your principal residence, rental property, cottage, or commercial building. Unlike bank loans, Home Equity Loans use common sense when approving loans and allow for repayment flexibility. Basically, Home Equity Loans can be crafted to fit individual requirements.

A home equity loan provides homeowners the ability to leverage the money they need, when they need it.

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When Would I Need A Home Equity Loan?

Home equity loans are used by Canadian Homeowners when more traditional forms of Mortgage Financing can't help. Some of the more common uses to take out a Home Equity Loan are to Pay-Off High Interest Consumer Debt or sudden Unexpected Expenses. However, their are many uses for a Home Equity Loan:

Debt Consolidation: Pay off high-interest debts (like credit cards) by consolidating them into one lower-interest loan.

Credit Repair: Paying off judgements, collections or other debts

into one lower payment with lower interest.

Stop Foreclosure: Protect and save your home.

Home Renovations: Fund significant upgrades like a kitchen remodel, new roof, green energy upgrades or home addition, which can also increase your home’s value.

Avoid Bankruptcy or Consumer Proposal: Protect your credit by paying off outstanding loans.

Divorce Settlement: Help manage a divorce settlement, such as buying out your spouse’s share of the home.

Tax Liabilities: Use the loan to settle unexpected or large tax bills such as CRA income tax arrears or property tax arrears.

Buying a Second Property: Use the equity to make a down payment on a vacation home or rental property.

Major Life Events: Pay for weddings, milestone birthdays, or other large family events.

Investment Opportunities: Invest in stocks, bonds, business or other opportunities that require large upfront capital.

College or Education Costs: Pay for college tuition, private school, or other educational expenses.

Paying Off Student Loans: Use it to pay off high-interest student loans with a lower-interest rate home equity loan.

Invest in Your Business: Add working capital, upgrades or renovations.

Estate Planning: Cover the costs of estate planning services, such as creating a trust or updating legal documents.

Purchasing Land: Buy land for future development or as a long-term investment opportunity.

Elderly Care for Parents: Help cover the costs of in-home care, assisted living, or other long-term care services for aging parents.

Speak to a Home Equity Loan Advisor (416) 908-2070

How Does A Home Equity Loan Work?

Your home's equity is the collateral for your loan and the primary qualifying criteria.

How much you can borrow depends upon how much equity you've built up in your home. Typically, a homeowner can borrow up to 80% of the current value of their home.

If your not sure how much you may be able to borrow, reach out to us, we are happy to calculate an estimate for you.

Once we determine how much you can borrow with a Home Equity Loan, it is our job to customize the mortgage to best meet your short and long term goals.

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Why Use Home Equity Freedom for your Home Equity Loan?

We understand each homeowner's unique needs and pride ourselves on tailoring solutions. When it comes to Home Equity Loans, the structure has to be as uniques as each clients' needs.

We do not offer "Cookie Cutter" solutions, but work with our investor partners to craft a solution that ensures a successful transaction for both the investor and borrower.

Our Home Equity Loan Approval Process

Apply Online - Use our online application form to start your Home Equity Loan application. You can also reach out to one of our Home Equity Loan advisors for help with the application process.
Initial Review - During this phase we review your application and make a request for any documentation we need to verify.
Final Review - We package up your application and submit to a lender for approval. By leveraging our technology and lender relationships, we can usually have an approval back within 24 hours of this phase.
Receive Funding - Once we have the approval signed by you, a package will be sent to your lawyer for review. Once you and your lawyer are satisfied, funds will be deposited to your account.