Home Equity Line of Credit
Home Equity Line of Credit (HELOC)
One of the biggest perks of homeownership is the ability to build equity over time. You can use that equity to secure low-cost funds in the form of a Home Equity Loan or a Home Equity Line of Credit (HELOC). Home Equity Loans and HELOCs both use the equity in your home that is, the difference between your home’s value and your mortgage balance as collateral.
A Home Equity Line of Credit is different from a Home Equity Loan. A Home Equity Loan is a one-time lump-sum payment, up to 80% of your home’s value, whereas a Home Equity Line of Credit is a revolving credit, much like a credit card. You only have to qualify and be approved for a home equity line of credit once and you can access your Home Equity Line of Credit whenever you want.
Squre Capital Managment Inc. specializes in finding the best Home Equity Line of Credit. We can tap into a wide variety of lenders including private lenders. If you need assistance in calculating your property value or equity, call us!
Advantages of a Home Equity Line of Credit
- easy access to available credit
- often lower interest rates than other types of credit such as unsecured loans and credit cards
- you only pay interest on the amount you borrow
- you can pay back the money you borrow at any time without a prepayment penalty
- you can borrow as much as you want up to your available credit limit
- it’s flexible and can be set up to fit your borrowing needs
- you can consolidate your debts, often at a lower interest rate
Home equity lines of credit can have different interest rates depending on how they’re set up. Squre Capital Management Inc. can help you get the best interest rates available in the market. Some of the factors affecting the interest rate are:
- your credit score
- income stability
- net worth
- your home’s price
- any existing relationship you may have with them
HELOC is a Backup Fund to Meet your Needs
- Managing unexpected expenses – A Home Equity Line of Credit can help you manage unexpected expenses or emergencies, such as a job loss, which means you are borrowing money to pay for your living expenses.
- Consolidating debt – A Home Equity Line of Credit can also be used to consolidate high-interest debt, such as credit cards. A lower interest rate may help you manage your debt. However, you still need to take steps to address how you spend money. Square Capital Management Inc. can give you valuable advice on these steps.
- Using home equity lines of credit to invest – A Home Equity Line of Credit can also be used to take advantage of other investment opportunities.
For complete information on Home Equity Line of Credit, refer to Getting a Home Equity Line of Credit, a complete guide to Home Equity Line of Credit by the Government of Canada.
- Getting a home equity line of credit. Retrieved from https://www.canada.ca/en/financial-consumer-agency/services/mortgages/home-equity-line-credit.html