Home Equity Loan Canada: Everything You Need to Know

Do you need cash, but struggling to get a loan approved due to bad credit? A home equity loan in Canada can be the solution you are looking for. At TurnedAway.ca, we specialize in helping individuals access home equity loan solutions that can work for them, regardless of their credit history.

Don't let bad credit hold you back. Get approved for a home equity loan today with TurnedAway.ca.

get-approved-white

What is a Home Equity Loan and How Can I Use It?

Learn about Home Equity Loans and how to use it to finance
your next project.

Home Equity Loans for People with Bad Credit Made Easy!

Our lenders use practical underwriting when approving home equity loans. Our approvals are based on the equity in your home and have no credit or income requirements! A home equity loan with no credit check – what are you waiting for?
6tY94kE Imgur - Home Equity Loan - Using Your Home Equity Has Never Been Easier!

What is a Home Equity Loan and How Can I Use It?

With Canadian property prices on the rise, homeowners are also seeing an increase in the value of the equity in their homes. However, this equity isn’t readily available for a homeowner to use unless it’s accessed through a home equity loan. The equity you have in your home is the difference between how much money you still owe on your mortgage and the value of your home. For example, if you owe $100,000 on your home worth $300,000, you have $200,000 in home equity. Here are some important points of information on home equity:
  • Home equity will increase in value when the value of the property increases and when the mortgage is paid down.
  • Home equity loans are borrowed against home equity and are also known as a second mortgage, home equity installment loan, or equity loan.
  • Home equity loans are highly advantageous as they typically offer a fixed interest rate that is much lower than credit cards or personal loans.
  • Home equity loans differ from HELOCs, which have variable interest rates and allow borrowing different amounts needed within a limit for the duration of the term.
If you’re not eligible for a traditional home equity loan, there are still options worth going after. TurnedAway.ca provides equity lending for those with bad credit in Canada.
Call Us: 1-855-668-3074
Approvals within 24 hours
Contact TurnedAway.ca today.

Apply For a Home Equity Loan with TurnedAway.ca Today!

We make it easy to access the equity in your home and get the money you need without credit or income requirements. Talk to a mortgage broker now!
get-approved
bad credit - Home Equity Loan - Using Your Home Equity Has Never Been Easier!
Understanding Home Equity Loans Canada

How Does a Home Equity Loan Work?

How borrowing on home equity works? If you’re considering taking out a home equity loan in Canada, it’s important to evaluate a few key factors before deciding. Here’s what you need to know:

  1. Application and Qualification

    You’ll need to apply and qualify to get a mortgage equity loan, just like with a regular mortgage.

  2. Lump Sum Payment

    If approved, you’ll receive a one-time payment that you can use for any desired purpose.

  3. Fixed or Variable Interest Rate

    The loan will have a fixed or variable interest rate over a set term, determining your monthly payment amount.

  4. Second Mortgage

    You’ll be responsible for making regular payments on your first mortgage and the home equity loan. Read more about second mortgages.

  5. Interest Rates

    While equity loan interest rates are typically lower than credit card rates, they are not as competitive as 1st mortgage rates, because second mortgages come with more risk.

  6. Repayment Risks

    If you default on payments, your mortgage lender will begin the foreclosure process. In the event of this, the 1st mortgage will be paid off first, leaving the home equity loan lender to recover their investment from whatever remains. To mitigate the risk, second mortgage providers charge moderately higher interest rates.

    home. Before applying, consider your financial situation and ability to make payments not only today but also in the future.

    TurnedAway.ca can help you understand home equity loans better and help you find the best possible terms to meet your unique needs.

Types of Home Equity Loans

While mortgage and installment loans can be confusing, home equity loans are simple. There are two types of home equity loans:

Fixed-Term Loans

These short-term loans are given to the borrower as one lump sum.
  • Interest rate is usually fixed.
  • Monthly payments are based on the loan amount advanced.
  • Easier to qualify for because minimum income levels or credit scores are not required.

Revolving Loan

This loan is most often referred to as a home equity line of credit (HELOC).
  • You will be approved for a predetermined amount.
  • Instead of advancing all the funds one-time, you can access them as needed, like a credit card.
  • Payments are based on the balance owed.
  • Credit can be reused once it’s paid off.
While getting a home equity line of credit with bad credit is possible, it is more challenging than a home equity loan. One of the best ways to improve your chances of qualifying is to work with a broker specializing in these types of home loans.
It’s no wonder people are turning to alternative mortgage funding to buy a home. If your lender has turned you down, you still have alternative mortgage options available. Find out why and how a B Lender can often get you into a new home when the big banks can’t.
a mortgage broker and a client talks about home refinance vs home equity loan - Home Equity Loan - Using Your Home Equity Has Never Been Easier!
attractive businesswoman sitting office businesswoman - Home Equity Loan - Using Your Home Equity Has Never Been Easier!

Home Equity Loans vs HELOCs

If you’re a homeowner looking to tap into the equity of your house, you might be wondering whether a home equity loan or HELOC is the best option. Here are a few key distinctions that differentiate the two:
  • Home equity loans offer borrowers a single lump amount with a fixed interest rate for the term of the loan, commonly lasting between five and fifteen years. The payment amount and interest rate remain the same over the loan’s lifetime.
  • Like a credit card, a HELOC allows you to access funds when needed and repay what has been borrowed. You only pay interest on the amount you owe. The other nice benifit is that they usually have low rates and flexible low payment options.
  • Deciding to get a home equity loan or a HELOC will depend on your financial situation and borrowing needs. You must weigh the pros and cons of each option and compare interest rates and fees from multiple lenders to make the best decision.

Why Take a Home Equity Loan?

Because home equity loans in Canada can be a great way to access cash fast, a homeowner may want to tap into their equity for many reasons. Here are some ways to use a home equity loan:
  • Consolidate high-interest debt such as payday loans and credit card payments
  • Renovate homes
  • Pay outstanding debt for property tax arrears
  • Stop Power of Sale or Foreclosure
  • Rebuild your credit if you have a bad credit score
  • Pay off debt owed for other taxes to the Canada Revenue Agency (CRA)
  • Increase liquidity to pay ongoing or anticipated expenses
Beyond these, the possibilities are endless. Reach out and explore your options at Turnedaway.ca. We have made qualifying for a home loan simple, fast and easy.
a mortgage broker and a client talks about home refinance vs home equity loan - Home Equity Loan - Using Your Home Equity Has Never Been Easier!
new home keys plan table with defocused couple - Home Equity Loan - Using Your Home Equity Has Never Been Easier!

Benefits of Getting a Home Equity Loan

Here are some of the benefits that come with home equity loans:
Because home equity loans are secured using your home as collateral, interest rates are extremely competitive and can be used to consolidate unsecured high interest debt.
You can be approved for a loan up to $100,000 using your property as collateral.
There are no restrictions on the amount a homeowner can borrower, however most lenders do not lend more than 80-85% of a homes appraised value.
You can get the money you need fast for those unexpected costs, such as emergencies, home repairs, and more.

If you continually make your payments on time, a home equity loan can be the ideal option for boosting your credit score. 

At TurnedAway.ca, we can be your go-to financial solutions specialists for when life brings the unexpected. Our loan and mortgage experts are not only ready to provide you with professional and sound recommendations but will also help assist you with navigating through a fast, simple and easy approval process.  

Borrowing Against Home Equity - How Much Home Equity Loan Can I Get?

The limit for a home equity loan is the Combined Loan-to-Value (CLTV) ratio of 80% or less for well-qualified borrowers. This means that the total balances of all loans, including the new home equity loan, cannot exceed 80% of the home’s appraised value.

For example, if a home is appraised at $500,000 and has an existing mortgage balance of $200,000, the borrower could take out up to $200,000 ($500,000 – $200,000 x 80%) in a home equity loan if approved. In some instances 85% of a home’s value can be secured. Not sure how much you may be eligible to borrow? Try our Home Equity Loan Calculator.

types of home equity - Home Equity Loan - Using Your Home Equity Has Never Been Easier!
Looking for a solution to your financial needs?

Achieve Your Financial Goals with a
Home Equity Loan!

Did you know that your home equity loan offers the opportunity to borrow up to 80% of your home’s market value minus any remaining amount owed on a primary mortgage?  

Let us help you access the equity in your home and put the money to work for you. 

house investments elements assortment - Home Equity Loan - Using Your Home Equity Has Never Been Easier!

What Is the Easiest Way to Gain Access to Your Home Equity?

There are ways to gain access to your equity without selling your home, including: 

Traditional lenders typically have strict requirements for approval. More flexible lenders like TurnedAway.ca offer home equity loans without credit checks or income requirements. 

Can I Get a Home Equity Loan with Bad Credit?

If you have bad credit, getting a home equity loan is easier than obtaining other types of loans. It’s because home equity loans are secured by the equity in the home. At Turnedaway.ca, we offer options for home equity loans without the need to search online for “bad credit home equity loans guaranteed approval.” That being said, you might not be able to get a home equity loan from every lender. The five major banks in Canada have requirements you must meet to borrow. The criteria are:
  • Having a history of making debt repayments on time
  • Having a minimum credit score of 620
  • Having a debt-to-income ratio that is 35% or lower
  • Having at least 15% equity in your home
  • Having stable employment
If you don’t meet these criteria, you will want to look to more flexible Canadian alternative lenders than traditional banks. At Turned Away, we don’t have any credit requirements for our home equity loans. We’re here to help you access your home’s equity, and we do everything we can to ensure the process is simple and fast.
closeup shot person thinking buying selling house - Home Equity Loan - Using Your Home Equity Has Never Been Easier!
happy insurance agent shaking hands with young couple after successful meeting - Home Equity Loan - Using Your Home Equity Has Never Been Easier!

How to Access Home Equity Loan with Low Income?

If you have a low income and need to access the equity in your home, it may seem daunting to apply for a home equity loan. Traditional lenders often require stable employment, but there are more flexible lenders like Turned Away that can help you access your property’s equity without any income requirements.  

As a secured loan, the lender can take possession of your house if you fail to repay it, making them more willing to risk lending your money.  

At Turned Away, we aim to simplify tapping into your property’s savings account. Canadians often take out a home equity loan to consolidate their debt and lower their interest rates, simplifying their payments and becoming debt-free. 

Can I Get a Home Equity Loan with Bad Credit?

If you have existing bad credit and are interested in applying for a home equity loan in Canada, you’re likely relieved that you can get a loan without any credit or income requirements. That being said, improving your credit score should be a priority and offers many benefits. You can use several tactics to build and improve your credit score over time. These include:
  • Using your credit wisely.
  • Diversifying your types of credit.
  • Monitoring your payment history.
  • Building credit history over time.
  • Limiting how many times you apply for credit.
If you are considering taking out a second mortgage, you’ll be glad to know that this can also help your credit. You can learn more about how this is possible in this article.
closeup shot person thinking buying selling house - Home Equity Loan - Using Your Home Equity Has Never Been Easier!
estate agent giving house keys woman sign agreement office - Home Equity Loan - Using Your Home Equity Has Never Been Easier!

Why Choose Turnedaway.ca

Because our name says it all! We’ve been helping people obtain home equity loans for over 30 years. If you’ve been turned away by the bank for a loan in Canada, we can help you find the financing you need.  

Today, having bad credit or facing financial challenges isn’t uncommon. Our team at Turnedaway.ca understands this, and we are here to help.  

Looking for Easy-to-Qualify Home Equity Loans? We Got You!

Fast home equity loans can be a crucial financial tool for homeowners to use, but getting approval from a traditional lender can be challenging if you lack income or have bad credit. Fortunately, there are alternative options available for fast and easy home equity loans in Canada. 

At Turned Away, we work with partners who give importance to the equity in your home rather than your credit score or income. We specialize in serving individuals who have been turned away by traditional lenders.  

Are you ready to tap into your home equity? Contact us today and apply here! 

types of home equity - Home Equity Loan - Using Your Home Equity Has Never Been Easier!

Need Help With Something Else?

bad credit mortgage - Home Equity Loan - Using Your Home Equity Has Never Been Easier!
Poor or Bad Credit

property tax arrears - Home Equity Loan - Using Your Home Equity Has Never Been Easier!
Property Tax Arrears

unpaid collection accounts - Home Equity Loan - Using Your Home Equity Has Never Been Easier!
Unpaid Collection Accounts

self employed - Home Equity Loan - Using Your Home Equity Has Never Been Easier!
Self Employed Clients with Stated/Low/No Proof of Income

bankruptcy consumer proposal - Home Equity Loan - Using Your Home Equity Has Never Been Easier!
Bankruptcy Consumer Proposal

canada revenue agency taxes - Home Equity Loan - Using Your Home Equity Has Never Been Easier!
Revenue Canada Debts/Liens

missed mortgage payments 2 - Home Equity Loan - Using Your Home Equity Has Never Been Easier!
Missed Mortgage Payments

Judgments Liens Executions - Home Equity Loan - Using Your Home Equity Has Never Been Easier!
Judgments, Liens & Executions