Home equity loans in British Columbia
Whether you need $10,000 or $50,000 – Alpine Credits is the best alternative for home equity loans in British Columbia (BC)
Borrowing against home equity is one of the easiest ways for homeowners in BC to get a large loan at a low-interest rate. An increasing number of British Columbians are looking at unlocking the equity in their home to use as a financial resource. You can calculate the equity of your home by subtracting the amount you owe on your mortgage from the value of your home. Alpine Credits has helped millions of Canadians consolidate debt, pay for medical expenses or other expenses by utilizing their home equity.
A home equity loan is similar to any other loan, except that it is secured by your home. Since you are protecting the loan with an asset, the amount you can borrow is much higher, and the interest rates are much lower than borrowing against your credit card or personal lines of credit.
While there are several types of home equity loans, the majority of them fall into one of two categories:
- Lump-sum payout: This type of loan allows you to collect the approved amount at once and repay it over time at a fixed interest rate.
- HELOC: A Home Equity Line of Credit is similar to an unsecured line of credit. The borrowing limit is higher when compared to other credit formats and you can pay it back, and borrow again later.
You can borrow up to 65% of your home’s appraised value. However, the combined value of your mortgage and home equity loan cannot exceed 80% of the value of your home.
Big banks have set criteria for home equity loan approvals. You will need:
- A credit score that the lender considers appropriate
- A steady income that is sufficient to cover repayments
- A high income-to-debt ratio. Your debt-to-income ratio should be less than 40%
In certain instances, you may also require:
- Proof of your home’s ownership
- Data on the mortgage
- An evaluation of your house
At Alpine Credits, we focus more on your home’s equity value and having a low credit score or unstable income does not impact your chances of approval.
Key benefits of our home equity loans in BC
Having multiple debts with different lenders can not only increase your interest charges but also impact your credit score. You can save a lot of money on interest by using a home equity loan to consolidate and pay off your debts quickly.
Do you have plans to renovate your home? Why not use a home equity loan instead of placing it on your credit card? A home equity loan from Alpine Credits is perfect if you are borrowing a large amount of money and won’t be able to repay it quickly. Not only does it have a lower interest rate than a credit card, but you can pay it back on your own time.
A home equity loan could be a good option if cash flow is your primary concern. The payments on a home equity loan are far less complicated. Unlike other mortgages, which require you to make payments that include both principal and interest, a home equity loan allows you to make only interest payments if you so choose. This puts less of a burden on your cash flow, which is particularly important during difficult financial times.
Signs you need a home equity loan in BC
You should consider getting a home equity loan if you are looking for a large amount of credit in a short period. Such needs can arise due to the following reasons:
- Home improvements and renovations boost the market value of your home
- Combining several debts into a single big debt, or other forms of debt restructuring
- Unexpected large expenses like medical or tuition
- Obtaining interest rates that are lower than those offered by credit cards
- Taking advantage of falling market interest rates on similar loans
Frequently asked questions
The first step in obtaining a home equity loan is to determine which type of loan you need. The lender will pull your credit report and most likely need a home assessment to do so. They will also look at your income, and debt-to-income ratio to determine if you qualify. As each case is unique the requirements may differ.
Once you have been approved, you will need to put down a 20% deposit on the loan. You will have to make payments according to the terms of your agreement from then on. If you want to use a home equity loan instead of a mortgage, you will need to put down a 35% deposit. This option will offer you more versatility in the long run, but it will also cost you more money upfront.
A home equity loan is typically a one-time payment of up to 80% of your home’s value. You will be charged interest on the whole loan. If you’re unaware of how much your house is worth, you will need a professional valuation.
With other lenders you’ll require a credit score of 700 or higher. However, Alpine Credits doesn’t check your credit score or income history.