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Case study: Successful use of a home equity loan in BC

Mona, a resident of Victoria, wanted to accomplish some renovations in her townhouse. She had lived there with her family for over a decade and decided the house needed a new look. However, she knew doing a full makeover was a big financial commitment, so she browsed different loan options before moving forward. 

As she researched, she found her options becoming more limited. Lenders across the province required her to have a stronger credit score or a higher income. Even though Mona met most of the minimum requirements, other lenders offered high interest rates or insufficient loans. To keep the process simple, she found her solution with a home equity loan from Alpine Credits 

After realizing that the only eligibility requirement at Alpine Credits was at least 25% of the home paid for, Mona appraised her house to estimate her equity accurately. With the house’s value determined, she applied for a home equity loan at Alpine Credits, who approved her quicker than expected.  

With a loan that had a lower interest rate than credit cards and personal loans, Mona and her family started working on the house. The home equity loan was enough to cover the cost of materials and general contractors for some parts of the house. After a few months of renovations, Mona’s family enjoyed the comfortable new space.

How home equity loans work in BC 

Like traditional loans, home equity loans have a similar progression where you must apply, wait for the results, and receive the funding. You’ll start making regular payments, including interest, at the frequency you agreed on beforehand. 

Home equity is calculated by subtracting your outstanding mortgage from the appraised value of your house. Lenders allow you to borrow up to 75% of your available equity.  

Home equity loans can be used in multiple ways, the most common uses being loan consolidation, home renovations, and business capital. While both traditional and alternative lenders have home equity loan options, Alpine Credits provides a more flexible option for homeowners in British Columbia.  

Two colleagues looking at a loan application.

Why consider a home equity loan in BC 

Compared to unsecured personal loans, home equity loans in BC have higher values, which open new opportunities to homeowners across the province.  

  • Home improvements—like Mona, home equity loans can finance major changes to the house, increasing the house’s appraisal value even more.  
  • Business investments—if you want to start a business or need additional financial support for your current establishment, you can use a home equity loan.  
  • Loan consolidation—paying multiple credit cards and loans with a home equity loan can save money and manage your finances more effectively. Home equity loans have a lower interest rate than the combined rates of other financial obligations.  

The purpose of home equity loans in BC is just part of the reason to consider them. They also provide the following benefits. 

  • Lower interest rates—home equity loans have good interest rates compared to credit cards or bad credit loans. The loan being secured by the property is how the interest can still be reasonable. 
  • Flexible eligibility criteria—As long as you have paid the minimum amount for the property, you will likely be approved. Credit score, income, and age are less likely to be involved in the approval process.  
  • Fixed monthly payments—home equity loans make it easy to budget because they have fixed interest rates with a predictable payment schedule.

Conclusion: Get a home equity loan at Alpine Credits

If you own a home and have paid at least 25% of the property value, you can get a home equity loan like Mona. With the help of Alpine Credits and housing value in BC, homeowners can easily access a home equity loan. The application is only three steps and can be done quickly. 

  1. Apply online—since the application only asks you to provide your personal information and your house’s appraisal value, filling it out takes a few minutes.  
  2. Receive approval—you will hear about your approval within a few days. Some applications can be processed as quickly as 24 hours.  
  3. Use the loan—once the money is deposited into your account, you can move forward with your financial goals as Mona did. You can consolidate your loans or renovate your home. 
  4. Alpine Credits wants to help residents in British Columbia achieve some of their financial goals. We understand that major financial institutions have strict approval criteria, so Alpine Credits creates an alternative solution. Instead of determining your eligibility for a loan with your credit score and income, Alpine Credits only considers how much home equity you have.
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Frequently asked questions

Home equity loans work similarly to other lump sum loans. You can use the funds immediately once the lender deposits it in your bank account. Home equity loans are usually repaid monthly, so you’ll be expected to start paying the following month.

You can find home equity loans from alternative lenders like Alpine Credits. Their flexible criteria make home equity loans more accessible to homeowners across BC. 

You can get a loan worth 75% of your home equity, depending on the lender and the expectations they set. BC homes have high appraisal values, meaning the loan amount can be significantly higher than home equity loans in other provinces.