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Home equity loans in Canada

Whether you need $10,000 or $50,000 – Alpine Credits is the best alternative for home equity loans in Canada

An increasing number of Canadian retirees are looking to use their home equity to boost their financial position. Longer retirement years, smaller benefits, and inadequate savings can all contribute to financial stress among retirees. Sudden illness or other unpredictable incidents can place a strain on your finances as well. As a result, an increasing number of Canadian retirees are looking to use their home equity to boost their financial position. Alpine Credits has been helping homeowners unlock the equity in their home for over 50 years. If you’ve been denied a loan by a bank in Canada, we can assist you in obtaining the funds you need.

What are home equity loans?

In Canada, a home equity loan is a broad concept that refers to a variety of loans in which the borrower uses the equity built in their home as collateral. Since the home is used as collateral, home equity loans in Canada usually offer larger amounts and lower interest rates when compared to unsecured loans.

Other possible home equity loan advantages include flexible repayment options. Moreover, they’re often the only option when unsecured loans aren’t accessible, which can be the case if you have a low credit score.

You might be able to apply for a home equity loan directly through your bank. Alternatively, you can also do it via a mortgage broker. The conditions for a home equity loan differ depending on the type of loan you apply for. A second mortgage and a home equity line of credit (HELOC) are the two most common forms of home equity loans in Canada.

How to qualify for a home equity loan

Borrowers are typically eligible for a home equity line of credit if they have at least 20% equity in their homes. In some cases, the required equity can be as high as 25%. The limit can exceed 25% in certain rural areas. This cap is in place to protect the lender as it ensures that the creditor owns a fair amount of their equity. In reality, the higher your home equity, the better the interest rates you receive. However, the minimum equity threshold may differ slightly from one lending institution to the next. On farms and specialty lands, HELOCs are uncommon.

Per Canadian regulations, you can borrow up to 80% of your home’s current value. Deducting the mortgage liability from the existing market value of the house yields the owned home equity. For example, if your home is worth $300,000 but you owe $200,000 on it, your equity stake is $100,000. You can borrow up to $240,000, i.e., 80% of the value of your house. Given that you already owe $200,000, you may use your equity to borrow the remaining $40,000.

Lenders also conduct a financial background check on the homeowner determining their ability to repay the home equity loan Your credit history is important when it comes to approving HELOC and to determine the interest rate. Your debt-to-income ratio is often taken into account when ascertaining this.

Home Equity Loan Equation
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Signs you need a home equity loan

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Getting a home equity loan might be a good idea for the following purposes:

  • Renovations to the house
  • Extensions or upgrades to your home
  • A brand-new vehicle
  • To pay for your children’s education or healthcare premiums
  • Pay off loans and credit card bills with high-interest rates
  • A comfortable and stress-free retirement

If you need a large sum of money, you can get it by taking out a loan against your home’s equity.

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Key benefits of our home equity loans in Canada

Since your home is an asset, you can use your equity to fund any upgrades you choose to make. This subsequently increases the market value of your home which can increase the price of your home in case you decide to sell it.

If you plan to put the extra money from your second mortgage loan into income-generating assets, you may be able to claim the interest as a tax deduction.

As a homeowner, you can use your equity to fund upgrades, purchase assets, plan a family holiday or pay your kid’s tuition . You can also use the loan to consolidate other high-interest loans that you may have.

Tired of making payments on multiple loans throughout the month? Our home equity loans are perfect for debt consolidation. Make just one monthly payment at a competitive interest rate.

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heloc vs mortgage FI Alpine Credits

Frequently asked questions

There are two types of home equity loans, those that are used in conjunction with a mortgage and those that are used on their own.

In essence, a home equity loan is a transformation of your money from an illiquid investment to a liquid one.Alpine Credits gives you access to your hard-earned money which you’ve invested in your home and allows you to put it to better use.

A home equity loan can be extremely useful in the event of a financial emergency, such as job loss, death in the family, or if you need money for unexpected expenses.

Most major banks in Canada offer home equity loans. However, the application standards are incredibly strict. Unless you have stellar credit and stable employment as evaluated by the lender, getting approved is unlikely.

At Alpine Credits, we’re known for approving homeowners. If the banks say no, apply with us! We’ll see what we can do.

When you apply for a home equity loan, the lender will need to appraise your property. This will help them determine how much equity is available for you to borrow. At Alpine Credits, we make the entire process very easy. Contact us to get started.

You can use a home equity loan from Alpine Credits for just about any legal purchase. Whether you’re freeing up funds for your retirement account or doing a major renovation, we’ve got you covered.