HOME EQUITY LOANS
ONTARIO

The definition of a home equity loan, also known as a private mortgage, is a fixed-term loan designed to use a homeowner’s property as collateral to receive a large lump sum of capital. The amount of money a homeowner is entitled to will depend on their home’s current value and how much equity they’ve accumulated based on their monthly mortgage payments.

If you’ve been paying off your mortgage for several years, you’ll likely have acquired home equity. If you could make a sizable down payment before your monthly mortgage, the equity percentage will be even more significant.

The market value of your property will also factor into the compensation you’re entitled to. If you live in an area where the housing prices are rising, your home’s equity will likely have increased, as will the loan you can receive.

Working with a mortgage brokerage is an easy and efficient way to access the equity you need without waiting for your bank to process your application. Burke Financial works with lenders in Ottawa, Kitchener, Hamilton, Toronto and all across Southern Ontario to provide our clients with convenient borrowing options that fit their lifestyle.

A second mortgage is considered a type of home equity loan as it’s an additional loan taken against a homeowner’s property with an existing mortgage. Homeowners put up their homes as collateral, and their lender offers a single lump-sum payment with a fixed interest and payment plan.

A home equity loan is a secured loan with a fixed interest rate. This means that the lender you’ve selected with your broker will allow you to borrow a definite amount of money, which is based on the current value of your home. You’ll have an agreement in place with your lender, including the loan’s interest rate and established monthly instalments.

A home equity line of credit (HELOC) is the opposite of a fixed loan as it provides homeowners with a credit line that they can access as often as needed, up to a specific amount. The interest rates for HELOC often fluctuate, as will the monthly payments.

Typically, the only requirement for a home equity loan is that you have enough equity in your property to borrow against. It’s important to remember that your current financial institution may not offer this type of loan. If they do, your credit score will likely need to be above 650 to qualify. Burke Financial works with borrowers at every credit level to secure the loan they need, even for borrowers whose credit falls below the 650 average.

Homeowners have the freedom to use their loan however they see fit. This type of loan is often used to cover high, unexpected costs such as a flood or necessary home repair. However, some homeowners choose to use their payment to purchase an investment property or make improvements on their home that will increase its value.

Burke Financial offers homeowners at every credit level the opportunity to receive a loan on their home equity. We use our expertise to help borrowers with the most challenging applications approved.