Want to check our more video? Click here!
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.
We’ve helped a lot of people. See what they have to say!
Marilyn & Bob T
We can’t thank you enough for all your help with our mortgage. We were skeptical about filling out an online application but we had tried several banks and due to our credit, couldn’t find anyone to help us. Getting a call within 15 minutes of submitting our application to go over the application put my mind at ease but my husband and I were both shocked to receive a call the same day with an approval. We are still amazed at everything you did considering how difficult the banks made our situation sound. Again, from the bottom of our hearts thank you so much!
Marilyn & Bob T, Whitby Ontario.
Dave & Sharon S
My wife and I felt completely lost and didn’t know where to go after being declined by our bank of 18 years. We were so relieved once you advised us there are still lenders that value a mortgage based on merits other than just your credit rating. We had never missed a payment on our mortgage for 18 years and to hear our bank say they couldn’t help us even though we owed virtually nothing on our home was heartbreaking. We couldn’t be more grateful that you helped out two complete strangers when nobody else would.
Dave & Sharon S, Ottawa Ontario
I can’t put into words how greatful I am to you regarding coordinating all of the activities in seeing my new mortgage go through. There are several reasons for the appreciation from my side but most importantly it will allow my daughter to continue to grow up in a home and neighborhood that she has identified as being very important to her.
I owned a home for almost 15 years and faithfully renewed at my bank every 5 years. About 14 years into my mortgage my job was terminated and I was forced to rely on credit cards to keep things going. Fortunately I found work after 7 long months but by then my credit had deteriorated and my bank wouldn’t help. I called turnedaway.ca after hearing one of their radio ads and I am glad I did. They bailed me out of a bad financial situation, got rid of all my credit card debt and got me down to one manageable mortgage payment.
John C, Toronto Ontario.