Do You Need Good Credit to Get a Home Equity Loan?
You don’t need good credit to get a home equity loan. However, you will need good credit to get a lower rate home equity loan. The very essence of a home equity loan is home equity.
How Much Can I borrow Using A Home Equity Loan?
Borrowers can use up to 75% of their home’s equity through an alternative mortgage lender. If you are looking for a HELOC then the maximums 65%.
What are the disadvantages of a HELOC rather than a Home Equity Loan?
HELOC do have some disadvantages like credit and debt servicing ratios. This can significantly reduce the amount of HELOC you qualify for.
What are the advantages of a Home Equity Loan over HELOC?
A home equity loan is approved on home equity not your income or credit. This may allow a home owner to qualify up to 75% of your homes value regardless of income or credit.
Are there costs savings of a HELOC rather than a Home Equity Loan?
HELOC are the cheapest product allowing home owners to obtain rates as low as Prime + .5%. The legal registration of a HELOC is also less. Usually under a thousand dollars for registering and appraising the property.
Home Equity Loans costs however are much higher. Rates can start as low as Prime + 4.55% and up. Additionally, there are higher legal costs and broker or lender fees associated with the financing.
Your BC Mortgage Broker Has More Information on HELOC’s or a Home Equity Loan. Call today