What is a Home Equity Loan, Home Equity Line of Credit (HELOC), or Second Mortgage?
If you’ve owned your home for several years or made a substantial down payment, you’ve likely built up home equity—the portion of your home’s value that you own after subtracting your mortgage balance.
For example, if your home is worth $350,000 and your current mortgage balance is $250,000, you have $100,000 in home equity.
A Home Equity Loan, Home Equity Line of Credit (HELOC), or Second Mortgage allows you to borrow against that equity. A Home Equity Loan provides a lump sum, while a HELOC gives you ongoing access to a revolving line of credit that you can draw from as needed. Both options can be used for debt consolidation, home renovations, investments, unexpected expenses, or other financial needs.
Depending on your situation, you may be able to access funds quickly—in some cases within just one day of approval. Contact Fast Home Finance today to learn which option is right for you and start putting your home’s equity to work.
How can a mortgage help with debt consolidation?
By using the equity in your home to take out a mortgage (or remortgage), you can pay off multiple existing debts and combine them into one manageable monthly payment. This can simplify your finances and may reduce your overall interest costs, making repayment more affordable and easier to track.
Why get a loan for home renovations?
A few simple renovations can increase the value of your property substantially. Think of it as an investment in yourself. A deck, a fence and a new kitchen can add tens of thousands of dollars to your asking price, which in turn puts even more equity in your pocket.
What are the rules regarding what I use the money for?
We are talking about your equity, and your money, and you are allowed to do what you want with it. Having a plan in place moving forward financially is always important, and we are here to help you find the best option, but you are in control of your investment.
What if I have bad credit?
If you own a home, you can get a mortgage, regardless of your credit or employment history. Obtaining a private mortgage can be a good way of starting the credit rebuilding process.
Is there a specific area my property needs to be in to get a loan or mortgage?
No, whether you live in a major city or have land in a rural area, we can provide a mortgage for you.
What if I only need a short term loan?
We take pride in being the fastest and most flexible mortgage provider in Western Canada, and are here to cater to your specific needs. We can do terms as short as 3 months, short term bridge loans if you’re buying and selling properties, etc. Call today and find out what options we have for you.