Considering a home equity loan but unsure how much equity you currently have?
A home equity loan is easy, if you’ve got the equity to back it up. Coincidentally, the question isn’t will you be approved, but rather, how much are you eligible to borrow?
Before you apply for a loan you’ll want to be sure you have equity in your property. We’ve created an easy online home equity calculator tool to give you an idea of what you may be eligible to borrow.
Home Equity Loan Calculator – What You’ll Need
What you’ll need to calculate your home equity isn’t difficult to get. You’ll need an estimate of the appraised value of your home and a list of any and all outstanding mortgage loans (this includes HELOC’s). Being that we are just trying to determine how much you are elligible to borrow, you won’t need to know your mortgage rates or mortgage payments just yet. Additionally, you’ll need to include any liens (i.e. Revenue Canada debt) registered against your property. And, If you’re unsure if you have a lien, a title search can be conducted to find out.
Our easy home equity calculation tool does the math for you. Simply input you home’s estimated value followed by each mortgage/lien and we will calculate how much equity you have in your home.
Next Step – Qualifying
If you’ve made it to this step, you can now fill in your information and click “how much am I eligible to borrow” to find out how much you may qualify for. Approvals can be provided in as little as 24 hours, and we’ll work with you to understand your circumstances, especially if you’ve been turned down for credit elsewhere.
Moreover, we can assess whether or not you will qualify for a secured home equity loan or line of credit. Likewise, we can discuss strategies to help you reduce your monthly payments and improve your credit rating.
Bad Credit – Fast Approvals
Fortunately, we are not hampered like many large financial institutions. Also, we have numerous lending options from both institutional and private lenders who are willing to overlook credit and income issues.
Our online home equity loan approvals are based on the amount of equity in your home – not your income or credit score. Similarly, you need not worry if you have a past bankruptcy or consumer proposal.
To sum up, the only major criteria lenders look at is the amount of equity you have. Qualifying is equity-based which means bad credit can’t hold you back if you’ve got equity. We can even help you improve your bad credit rating with a home equity loan to consolidate high interest debt.
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.
What can we help you with?
Now that you know how much equity you have, we can review your borrowing options. At Turnedaway.ca we understand that every situation is different. Once approved, you can use your home equity loan for a wide variety of purposes:
- Debt Consolidation – consolidate your high interest debt into one affordable payment
- Home Renovations – make repairs or upgrades to increase your property value
- Property Tax Arrears – catch up on property tax arrears to protect your home
- Foreclosure – stop a foreclosure or power of sale by catching up on mortgage arrears
- Canada Revenue Debt – pay off Revenue Canada debt and stop a tax lien or garnishment
- Consumer Proposal Payout – finish/pay off a proposal to improve your credit score
If you’ve got equity, we’ve made qualifying practical, simple and easy. And we’ll let you know if you’re approved – within 24 hours.