Where to get a home equity loan
As a homeowner in Canada, you’ve probably wondered how to unlock your home’s financial potential. An easy way to do this is to use the equity in your property to apply for a home equity loan. A home equity loan in Canada is a type of financing that allows you to use the equity in your home to access a substantial amount of funds, which you can use for various financial purposes.
Your home equity is the current value of your home minus any outstanding amount owed on your mortgage. Now that you’re familiar with what a home equity loan is, the next question is, “where to get a home equity loan?”
Banks and traditional lenders
Banks and traditional lenders are common providers of home equity loans in Canada. You can get a sense of security that comes with applying to a bank that you have been with for several years and is familiar with your financial situation.
However, their approval criteria for most applicants are inflexible. Therefore, it can be helpful to consider your financial circumstances before applying to one of these lenders. They usually require applicants to have a credit score above 600 points and provide proof of a steady flow of income, which makes traditional lenders a less desirable option for homeowners who don’t have the best credit history.
Alternative lenders
Suppose you are a homeowner finding it difficult to get approved by banks and other traditional lenders due to your credit or income history. In that case, you can secure a home equity loan with an alternative lender. Alternative lenders offer financial solutions to borrowers who have a home and are unable to obtain a loan from traditional lenders.
Lenders like Alpine Credits have over 50 years of experience helping bad credit borrowers secure their desired home equity financing. Instead of prioritizing the applicant’s credit score and income status, borrowers can use the equity available in their home. As such, alternative lenders can be excellent home equity loan providers to those who may not be ideal candidates for approval at big banks and other lenders.
Mortgage brokers
Mortgage brokers can be a good resource for finding home equity loans. The key difference is that a mortgage broker will act as an intermediary between a borrower and a lender. With a home equity loan, their job is to provide you with a list of lenders that have competitive rates and are suited to your financial situation.
Credit unions
Another good resource for home equity financing is credit unions. They are member-owned financial cooperatives. Some credit unions in Canada do offer home equity loans. However, most of them provide home equity lines of credit (HELOCs) to homeowners.
Conclusion: Getting a home equity loan with Alpine Credits
Alpine Credits can provide customized home equity solutions without looking at your credit score or income history. You can apply through the digital form on our website, after which a financial solutions specialist will reach out and guide you through the approval process.
Frequently Asked Questions
Interest rates on a home equity loan in Canada can range between 5% to 17%. However, the exact interest rate you receive will depend on your chosen lender and your financial situation.
The start-up costs for a company are generally higher than what the average Canadian has saved up, which means starting a business usually means that you’ll have to borrow money.
Your lender determines the exact amount you’ll need from either your personal income or your company’s income. In Alpine Credits’ case, you don’t need to meet a minimum income requirement if you’ve paid for at least 25% of your home equity.