What is a Home Equity Loan?
Home equity is the difference between what you owe on your home and your home’s market value. If your home is worth $500,000 and you have a mortgage for $150,000, you have $350,000 equity in your home.
We understand people may think of home equity loans as a confusing topic. So, they’ll go online, search calculators for home equity loan rates in Ontario, and try to do their calculations without knowing what exactly they’re doing. New Haven is here to help!
Why Take Out a Home Equity Loan in Ontario?
Frequently, there are several different ways someone will use their home equity loan. Some major reasons include:
- Renovations
- Business Financing
- Debt Reduction
- Education Funding
Renovations
Using a home equity loan for renovations is a popular reason people take out a home equity loan. For instance, renovations create a potential for a high return on investment if the home is put on the market and sold at a significant price. It’s a win-win!
Business Financing
Some people may use a home equity loan to finance their businesses, either as starting costs or future growth plans. However, it is essential to note that any person starting their venture should ensure their business plan is viable to avoid a bad investment and, thus, having more debt to pay back.
Debt Reduction
A home equity loan can be helpful to consolidate debt, especially if the debt is carrying high-interest rates, such as from credit cards. In addition, by paying off the principal loan faster, the amount of debt can be reduced significantly depending on how much equity is used.
Education Funding
To help pay for their children’s tuition costs, people may take out a home equity loan and remove the burden of student loans and interest piling up in the future.
If you want to talk to us about starting your home equity loan process or how to refinance your mortgage in Ontario, Contact us above or call 249-288-3482 .
Faster Processing Times
Our team is fast and efficient when it comes to processing inquiries, analyzing requests, and issuing commitments. This means you get the money you need when you need it.
Credible Reputation
New Haven Mortgage Corporation has worked hard to establish itself as a reputable leader within the mortgage industry. This means that both lawyers and lenders work with us to expedite the process.
Experts in Debt Consolidation
We understand that debt and financial hardships happen. Our team are experts in the alternative mortgage market and can help you find the best solution to your mortgage needs.