Home Equity Line Of Credit Waterloo – Access Mortgage
A home equity line of credit, or HELOC, is a revolving line of credit that uses your home’s current market value as collateral. When you have equity in your home, you can set up a line of credit that can be easily accessed and used for just about anything. If you are looking for a home equity line of credit in Waterloo, then consider Access Mortgage today! We can assist you in getting a home equity line of credit in Waterloo even if you have bad credit or no credit. Access mortgage is one of Canada’s largest mortgage brokers with access to over 400 private and institutional lenders. Read on for more information about a home equity line of credit in Waterloo from Access Mortgage.
What is a home equity line of credit (HELOC)?
A home equity line of credit is a loan in which the lender agrees to lend a maximum amount within an agreed period, where the collateral is the borrower’s equity in their house. Because a home often is a consumer’s most valuable asset, many homeowners use home equity credit lines only for major items, such as education, home improvements, medical expenses, or debt consolidation.
Combine your mortgage with a home equity line of credit in Waterloo.
Like a mortgage, a home equity line of credit in Waterloo can be registered against your home, allowing you access to a lower interest rate. What you may not be aware of is that these two financial products can actually be combined into one.
Lenders that offer this type of product will approve you for a maximum limit that you can borrow, and this amount will be collateralized and registered your home’s title as one mortgage. They can then split the amount into a mortgage portion that will come with the regular interest rate, terms, and payments and a HELOC portion. You can withdraw additional funds from the line of credit as needed, and repay the required interest only minimum or the entire amount. As the mortgage is paid down, some lenders allow the line of credit limit to increase in proportion. The benefits of this arrangement is that it’s less costly at closing to only register a single charge rather than two. Having a large line of credit also provides a lot of flexibility in terms of cash flow.
Loan to Value (LTV):
A loan-to-value (LTV) ratio is a financial term used by lenders to describe the ratio between the mortgage amounts registered on your home and the home’s value. The LTV is represented as a percentage of the total appraised value of your home. Lenders will evaluate your loan-to-value ratio while they are underwriting your loan. In general, borrowers with lower LTV ratios can qualify for lower mortgage rates than borrowers with higher loan-to-value ratios. Borrowers who have a lower loan-to-value ratio are considered less risky to lenders because they have more equity in their homes.
For more information about home equity line of credit in Waterloo please feel free to continue browsing through our website, or give us a call today! We can be reached at 1-844-397-3780 or by filling out our contact form.