Line Of Credit Kitchener – Access Mortgage
A personal line of credit in Kitchener is a loan that allows you to spend up to a certain predetermined limit. Unlike a regular loan, you don’t start paying interest charges until you decide to use it. You can use as much of the line of credit as you want, and pay back any amount as long as you make the minimum monthly payments set by your lender. Minimum payments may be a combination of interest and principal or interest only. A line of credit in Kitchener can be secured or unsecured, but Access Mortgage focuses solely on secured lines of credit for our clients. Access Mortgage specializes in working with clients who are in debt or have unprovable income. We help these clients by putting them on the path of debt relief and helping them obtain first, second, and third mortgages. We represent over 400 lenders, most of which specialize in subprime lending. Read on for more information about getting a line of credit in Kitchener from Access Mortgage.
Secured vs. unsecured lines of credit:
There are two types of lines of credit, secured and unsecured. An unsecured line of credit is not backed up by any asset. The unsecured line of credit can accumulate more interest than a secured one. A secured line of credit is backed by a valuable asset like your home or business. A secured line of credit has lower interest rates because it is secured against a valuable asset. Paying back the loan depends on the borrower’s circumstances and the asset that it is secured against.
Some benefits of a line of credit in Cambridge:
Lower interest rates:
Compared to the interest rates you’d pay with other types of consumer loans, the interest on line of credit loans are less expensive. HELOCs have fixed terms relative to length of loan or time you have to pay back what you borrow. Most are adjustable-rate loans tied to whatever financial parameter stipulated in the HELOC contract and usually go up and down with the prime Bank of Canada interest rate . Importantly, you only pay interest on the amount that you use, not the entire available amount.
Interest paid is tax deductible:
Depending whether you are self-employed, work from home or have a business, some of the interest you pay on your line of credit loan may be tax deductible – just like the interest you pay on your primary mortgage. The deductions for mortgage interest rates (primary and secondary) can add up to significant income tax savings. To find out whether you are able to make deductions such as these, you should contact a qualified accountant who can advise you accordingly.
Funds can be used for any purpose:
When you take out a line of credit loan, you can use the funds for any purpose: remodel your home or buy a boat, second home, car, education, medical expenses or procedures, anything you choose. But, the loan is secured against your property and needs to be paid like any mortgage that you would have with a lender.
Access Mortgage can assist you with getting a secured line of credit in Cambridge so that you can get debt relief and get you back on the path towards financial freedom. Our professional team will work for you to find you the lowest rates possible for your individual situation.
For more information about a line of credit in Cambridge from Access Mortgage, please feel free to continue browsing through our website. We can be reached at 1-844-397-3780 or by filling out our contact form.