Home Equity Line of Credit in Ottawa

If you’re a homeowner with a mortgage, there is a way to unlock your home equity before you consider selling your house. It is called a home equity line of credit also known as a HELOC.

Borrowing Made Simple can help you understand what a home equity line of credit is and how it works. We can also assist you in assessing whether a HELOC is right for your circumstances. A HELOC is not for everyone, so it’s always best to consult a professional before making any decisions.

Contact us now at (343) 763-2019 to find out if a home equity line of credit could work for you.

What Is a Home Equity Line of Credit?

A HELOC is a form of revolving credit. It is a secure borrowing tool that functions much like a credit card, offering flexibility for minimal interest. In this case, though, the lender may take your home as collateral if you are unable to pay back what you borrow.

How Do I Get a Home Equity Line of Credit?

If you’re interested in accessing your home equity, you must first apply for a home equity line of credit. For a borrower to be eligible, they must meet specific criteria and provide documentation.

HELOC Qualifications:

• Proof of employment
• Standard income
• Good credit score
• Minimum 20% home equity

Our specialists can help you get organized and submit applications to different lenders without delay. Give us a call to get started.

How Does a HELOC Work?

Potential lenders will need to know that you are an official homeowner to grant you a line of credit. They will need the following documentation:

• Proof of ownership
• Current mortgage balance
• Loan term and the amortization period

In most cases, they will also need a home appraisal done to confirm the value of your property.

What Is the Difference Between a Home Equity Line of Credit vs. a Mortgage?

A HELOC and a mortgage can be used in combination or separately. Depending on your situation, they are both excellent real estate funding options. To find out how to proceed with financing, or to open a HELOC in addition to your mortgage, call us.

Is It Better to Get a Home Equity Loan or a Line of Credit?

A home equity loan is a one-time, lump-sum loan, whereas a HELOC is flexible credit. The interest rate of a home equity loan is often higher than a line of credit rate. Still, each can be effective, depending on the circumstances. Our professionals are always here to advise you on the most viable course of action.

Learn More About HELOC in Ottawa

If used wisely, a HELOC can be a tremendous financial asset to have at your disposal.

At Borrowing Made Simple, we make sure you know to be prudent about your home line of credit – and we can get you the best line of credit rates. Our dedicated team keeps you well-informed and up-to-date, and we’ll be sure to let you know if a HELOC is right for you.

For more information, get in touch with us now at (343) 763-2019.