By Ronni Peel
Getting a home equity loan should be seamless. There’re many reliable private lenders in the market. So it’s entirely up to you to figure out the best option for your needs.
The best lenders will offer you affordable home equity loans to get money using the present equity you have saved up in your house. You can get the lowest mortgage rates in BC. And it can get approved in as little as 24 hours.
Unlike credit unions and banks, your credit history, income, and credit card debt are not necessary for your home equity loan approval. That is because the lenders focus on your home’s value, making the borrowing approval quite simple. Besides, you have many options when it comes to funding.
How Does A Home Equity Loan Work?
Home equity mortgage offers you access to the lowest mortgage rates in BC, those that meet your financial needs and goals. You also enjoy appropriate financing at the best costs and rates.
Home equity loan rates vary for many reasons, including your loan-to-value and location. To determine your home’s loan rates, the lender will assess your situation and the use of funds.
If you’re wondering, some of the common uses of home equity loans include: debt consolidation, covering student loans, reverse mortgage, business capital, purchasing a new home before selling your old one, home renovations, and supporting self-employment.
You can also get a non-resident mortgage in Canada. If you’re not a Canadian citizen, or have lived outside of Canada for a while, you’ll get deemed a non-resident. But there are ways to access home equity financing without any trouble.
The amount you can borrow with a home equity loan should be around 80-85% of your home’s value. That is dependent on your income, creditworthiness, and conditions.
You can get the highest limit of even 90% in rare cases.
With a private mortgage lender, you don’t have to worry about lack of income and credit score or dragging your loan amount down.
If you violate the mortgage terms, you may face foreclosure in BC. This is a legal action that happens when a company or individual who borrows the money using a mortgage violates the agreed terms. If you’re late on payments or miss making them altogether, you don’t forfeit your home to a lender automatically.
Lenders will avoid foreclosure as its time and money-consuming. They give you time to redeem yourself. But after about two to three months, they will send you letters demanding that you make payments as agreed.
If you have reasonable reasons why you’re late on your payment, you can try to communicate with your lender beforehand and create a plan to make up for the missed payments. If you get your financing in order, you will have to face the law. However, if you show no effort, you may end up losing the house.
Finally, if your lender begins the foreclosure process, you can obtain legal advice immediately. That way, you may have your case redeemed.
