What is a home equity loan?

A home equity loan is a loan that uses your home as collateral and does not affect your existing first mortgage.  Home equity loan approvals are based on the amount of equity you have in your home.  Credit or income are rarely a deciding factor in approvals.  To determine the amount of equity in your home you take any mortgages or liens attached to the home and subtract it from the value of your house.

Types of home equity loans

There are two types of home equity loans.  The first type is a loan with a fixed term that is given to the borrower in a lump sum.  This type of loan comes with a fixed interest rate and fixed monthly payments based on the amount of the loan.  Payments are made monthly for a fixed term, just like your first mortgage.

The second type of home equity loan is a revolving loan and is most often referred to as a home equity line of credit.  A home equity line of credit or HELOC, is a loan that has been approved for a predetermined amount that can be accessed as you need the funds.  A home equity line of credit is very much like a credit card.  You only pay based on what you owe and as you pay the HELOC down you can re-use the funds you’ve made available.

In both types of home equity loan scenarios, your home is used as collateral.  Generally speaking, fixed rate home equity loans are easier to get approved for because they don’t have to meet any income or credit requirements.

Why take a home equity loan?

There are lots of reasons a homeowner may want to tap into their equity and no two people are the same.  The fact is that home equity loans can be a great tool when you need cash fast.  A home equity loan can be used for:

• Consolidating high interest debt
• Home Renovations
• Pay property tax arrears
• Stop a power of sale
• Eliminate Revenue Canada debt

The possibilities are seemingly endless and Turnedaway.ca has made qualifying for a home loan easy.

I have equity but bad credit.

If you have equity but bad credit, that’s ok.  Turnedaway.ca’s lending partners approve home equity loans for bad credit based on the amount of equity in your home, not credit or income.  In fact, most of our home equity loans for people with bad credit have no income or credit requirements at all!

If your application for a home equity loan has been turned away by one of the major banks for any reason, we can offer a variety of solutions for almost every circumstance. Fortunately, not every lender has adopted the tight restrictions that the major banks have adopted and still offer home equity loans to clients based on common sense lending practices.

Why choose Turnedaway.ca?

We’ve been making sense of client’s applications for home equity loans for over 30 years. If you have been turned away by the bank for a home equity loan for reasons such as (but not limited to): the amount you are applying for, credit issues or you can’t verify your income, we can help. We have home equity loan options for just about every situation. Whether you are looking to leverage money to buy another property, consolidate high interest credit card debt or even pay off the Canada Revenue Agency we can help you arrange a home equity loan.