Home equity loans in Ontario
Whether you need $10,000 or $50,000 – Alpine Credits is the best alternative for home equity loans in Ontario
They have become very popular among Canadian homeowners owing to their low interest rates and repayment convenience. It is a way of using your equity as a financial resource. You can apply for bank loans based on the amount of equity that you have available in your home. It is a mortgage-based loan, with the rate of interest fixed and low, for the most part.
If you are looking for the best home equity loans in Ontario, you have come to the right place. Be it a $50,000 loan or a $200,000 loan, at Alpine Credits, we provide instant solutions to your loan requirements by making it easy for you to apply for a home equity loan in Ontario.
How to qualify for a home equity loan in Ontario
At a traditional financial institution in Ontario, you would need to demonstrate the following to qualify:
1. A credit score of at least 700, although a higher score is always desirable
2. An annual income of $100,000 for every $400,000 that you wish to borrow
At Alpine Credits, we can help you get home equity loans regardless of your credit score and income. We understand that each requirement is unique and the traditional lending criteria may lead to rejections. Contact us even if you have been denied a loan elsewhere!
Key benefits of our home equity loans in Ontario
There are many ways to apply for funds from banks and financial institutions. They will give you access to large sum of money in a short period. Here are the benefits of applying for this kind of loan:
The interest rates for home equity loans are lower than other loan options. It’s much more expensive to apply for an unsecured personal loan or credit cards.
As the interest rate is fixed you can repay the principal amount without additional penalties. This may reduce your monthly payments in the future.
You could be worried about the additional costs that come with receiving the approved funds. However, with Alpine Credits, you can be assured of low processing costs.
Interest payments on some home equity loans qualify as deductible expenses for tax purposes. This can be very helpful once tax season is around the corner.
Signs you need a home equity loan in Ontario
You should explore home equity loans if you want funds for:
Home equity loans can help pay for home improvement projects. Making updates to your home can increase its market value should you wish to sell it.
A home equity loan can help you cover unexpected expenses like tuition fees or medical bills.
You can use home equity loans for prospective investment opportunities, including starting new businesses or buying a second home.
Frequently asked questions
Home equity borrowing makes use of the equity in your home to get a loan. Equity can be calculated by subtracting the property value from the remaining mortgage amount.
Home equity loans are a one-time lump sum payout with a fixed interest rate and monthly payment.
The credit line, on the other hand, is a revolving loan. The interest rate is calculated based on the amount of money you use. It can be accessed at any given time, provided you stay within sanctioned credit limits. Similar to a credit card, once you have repaid for the line of credit, it will be made available to you again.
Unlike home equity loans, the interest on a line of credit tends to be variable. And thus, the payment that you make every month for a line of credit can also vary.
Closing costs are typical of most mortgage-related loans. Charges such as application fee, processing fee, underwriting fee, county recording fee, and others constitute 2-3% of the loan amount on average. Your lender should provide you with an estimate of all closing costs at the time of finalizing the loan.
Traditional lenders in Ontario will require a strong credit score and an income of at least $100,000 per year for a loan of $400,000. However, with Alpine Credits your credit score and income won’t be checked. It’s also easier to get approved.
For a 5 year fixed rate, the interest rate ranges from 4.29 to 4.59%. This depends on the kind of loan option you choose. Whether it’s insured or uninsured and what loan-to-value ratio you choose. The loan-to-value ratio is the maximum amount of a secured loan that you can receive based on market value.