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Home equity loans in Calgary

Whether you need $10,000 or $500,000 – Alpine Credits is the best alternative for home equity loans in Calgary

Life moves fast. You never know when business opportunities or emergencies spring up, so exploring options for a home equity loan in Calgary is crucial to help residents meet their financial goals or cover unexpected expenses. 

For over 50 years, Alpine Credits has helped homeowners access the equity from their homes without selling—all in a simple, fast, and fuss-free process.  

Whereas traditional banks and credit unions can have extremely high standards for providing home equity loans, such as excellent credit scores and employment, Alpine Credits primarily considers your home equity to get approved. 

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How home equity loans work

Home equity loans are also known as second mortgages in Canada. With a home equity loan, borrowers receive lump-sum payments that they’ll repay over a set period. 

Since home equity loans are secured against your home, traditional financial institutions and private lenders often offer lower interest rates than conventional mortgages 

Home equity loans and home equity lines of credit (HELOCs) use equity in your home but differ in their applications. A HELOC works like a credit card, so you can borrow money and pay it back multiple times if it is within your credit limit and draw period (usually ten years). 

Before you apply for a home equity loan or line of credit, it’s important to understand what home equity is. Home equity is the difference between the current value of your home and the total outstanding balance you have on your existing mortgage. 

Home Equity Loan Equation

If your home was worth $500,000 and had $100,000 outstanding on the mortgage payments, your total home equity would be $400,000. You could borrow 75% of your home equity, which is $300,000, to obtain a significant amount for any purpose, big or small. 

Why consider a home equity loan in Calgary

How Calgarians use home equity loans  

Home equity financing gives homeowners the ability to access funds from the equity in their homes for various purposes, including:

According to a report by Equifax, residents of Calgary and Edmonton held the most consumer debt in Canada, so more and more Albertans prefer consolidating their loans to simplify the repayment process and avail of lower interest rates. 

Many Calgarians use home equity loans for home renovations like a kitchen or bathroom makeover that will increase the value of their homes and their quality of life.

With Calgary’s expected 3.7% real GDP growth next year compared to 0.8% in Canada, Calgarians are well-positioned to take advantage of a booming economy. This means access to capital funding will be crucial for any business startups or expansions.

Funds from a home equity loan are not restricted, which means you can fund your own or your children’s education using the equity in the asset you already own- your home.

Instead of collecting high-interest charges on your credit card, a home equity loan can cover medication or unexpected hospital bills. 

A home equity loan allows you to turn your home’s locked value into capital, which can help you achieve your financial goals.

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Home Equity Loan in Ontario

Benefits of home equity loans in Calgary

These are some of the perks Calgarians enjoy with home equity loans: 

Lower cost of borrowing

Typically, home equity loans come with lower interest rates because lenders will have less risk, meaning they can resort to the collateral in case of payment default. A difference of even a partial percentage can result in tremendous savings, especially for loans amounting to tens or hundreds of thousands of dollars. 

Easy payment system

Many Calgarians need help with high debt and low cash flow. Home equity loans are structured so that it is easy to manage the debt.  

Loans from home equity are made up in tranches, so you get all the money necessary to cover your primary expenses early and avoid falling into debt cycles.  

Since you’re borrowing a lump sum with a fixed interest rate, your payments will be predictable and will not change over the loan term. 

Borrow money for virtually any purpose

With a home equity loan, you can use the cash for virtually any purpose, paying for major purchases, tuition, medical expenses, and even vacation. However, using the funds to make home improvements or to consolidate multiple high-interest debts into a single payment with a lower interest rate is more beneficial.

Deductible interest payments

If you use your home equity loan for investment, the interest you pay can be claimed as a tax deduction. 

Getting a home equity loan in Calgary

Applying for a home equity loan in Calgary is similar to applying for a mortgage. Aside from the usual documents, such as income statements and credit reports, a professional appraisal is needed to establish the market value of your home. 

With Alpine Credits, you can apply in 3 simple steps:   

  1. Apply online: Answer a few simple questions to see how much you qualify for. There’s no obligation, and it won’t affect your credit score.  
  2. Get approval: Unlike traditional banks, you only need to own your home to qualify for a loan at Alpine Credits. Once qualified, one of our lending specialists will help you customize your loan details. During this step, it is essential to present some documents, which include identification, proof of income, and your property and mortgage information.  
  3. Funding: Review and sign the loan agreement once the application is approved. Funds are deposited directly into your active bank account within a week. 
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Unlock your equity with a home equity loan Calgary 

Many residents of Calgary are looking for different options since traditional lenders have high credit standards that make it difficult to obtain mortgages. This is where alternative lenders come in.  

Alpine Credits uses different criteria to determine an applicant’s eligibility. Instead of credit history or income, the main determining factor of approval is sufficient home equity. Homeowners can be eligible for a home equity loan if they have paid at least 25% of the property value. 

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Frequently asked questions

Alpine Credits has been helping Calgarians tap into their home equity for over 50 years. With Alpine Credits’ simple application process and competitive rates, Calgarians can avail themselves of the financial freedom and security they need. 

A home equity loan generally allows you to borrow around 75% of your home’s equity. However, you can have higher equity the greater the value of your current home or the less you owe from your outstanding mortgage. 

Aside from unrestricted use of funds, a home equity loan will give you lower fixed interest rates and deductible interest payments, using the readily available equity from your home.

Aside from unrestricted use of funds, a home equity loan will give you lower fixed interest rates and deductible interest payments, using the readily available equity from your home. 

Since a home equity loan is tied to your home, there can be a risk of foreclosure in case of default. However, lenders also seek to avoid foreclosures and other legal proceedings just as much as borrowers, so they often have solutions. 

You may need an appraisal to determine your home’s current market value. However, lenders often have offers that covers this and other application fees. 

At Alpine Credits, we’re not restricting your home equity loan use. Whether you want to pay for home repairs or invest in a startup business, that money can be used as you see fit.