Equity used versus equity remaining

Once you have entered your figures into our home equity calculator you will see a bar representing your equity used versus the equity you have left. If you don’t have any equity a negative number will appear and the bar will be full. Conversely, the more equity you have the better, but even with limited equity you may still have options.

Albeit, there are a lot of lenders advertising that you can borrow up to 90-95% of the value of your home. That being said, most reputable lenders will not exceed approving a loan for more than 80-85% of its value.

How much do I qualify for?

Turnedaway.ca has simplified the process of getting approvals on fixed rate home equity loans. In most instances we can arrange for homeowners to borrow as much as 85% of the value of their home. Because these loans are approved based primarily on your equity, instead of credit or income, they can be approved and closed quickly.

What about the home equity line of credit (HELOC) alternative?

Unfortunately, qualifying for a HELOC isn’t as easy as an equity loan.  A home equity line of credit factors in things like credit and income. You will have to demonstrate better credit and income to be eligible. But, there are still lenders who don’t require the perfect borrower.

Despite being harder to qualify for, they are certainly worthwhile if you qualify.  Whereas a Home equity loan comes in a lump sum a HELOC can be used just like a credit card and you only pay on what you borrow. Additionally, the interest rate is usually more agreeable and the terms are slightly more flexible. Either way, using the equity in your home to consolidate debt is almost always a great way to save money.