Home Equity Line of Credit
Profitez de la valeur de votre résidence pour obtenir un financement flexible et autonome vous permettant de réaliser vos projets.
Take advantage of your property’s value today with an equity line of credit
There are a variety of options on the market that allow you to combine various mortgage products, like a line of credit, closed mortgages (1 year, 5 years, variable,etc.), all of which are guaranteed by a first rank mortgage that could be higher than your property value. This can all be set up in order to cover your future financial needs without having to pay for additional notary fees.
The maximum amount available immediately could be 65% of the actual value of your property. The interest on the line of credit is calculated monthly only on the amount borrowed. It is an open mortgage where you could only pay the monthly interests.
Get approved for a mortgage line of credit
These factors will help a financial institution determine the interest rate and limit of your line of credit. Don’t forget you can negotiate the interest rate and conditions regarding the line of credit.
Your liquidity
The probability you can pay back the money that you borrow.
Your revenue
Your household income should be between $35 000 and $50 000.
Your level of debt
How much credit you have with other institutions
Your credit score
Your background regarding bill payments and repayment of loans.
Why choose a home equity line of credit?
The advantages of a line of credit are numerous. You could use it as needed for renovations or pay off higher interest credit cards. If you are expecting to receive large sums of money in the future, there is no limit for capital reimbursements and no penalty.
Find a brokerThe advantages
- You can use the money as needed, to do renovations.
- Pay off credit cards that have higher interest rates.
- There is no set amount that must be reimbursed, and no penalties.
The disadvantages
- You could go through the funds quickly if you are not vigilant. Monitor your spending and keep bad habits in check.
- The interest rate on a line of credit fluctuates according to market conditions. They are not easy to predict.
- If interest rates continue to go up a lot, you could find yourself unable to pay back your line of credit.
Questions to consider before applying for a home equity line of credit
- How will I manage my expenses with the line of credit and stay within my budget?
- Are there any fees associated with the line of credit, and how much are they?
- Can I make this purchase now using a line of credit, or do I have to wait until I’ve saved up the money?
- How much can I afford to repay each month?
- Do I have to take out insurance on the line of credit in case of disability or death?
