Protect your home and secure your financial health with a home equity line of credit in Canada. At TurnedAway.ca, we can help you get approved for a Home Equity Line of Credit (HELOC) today!
Get A Secured Line ofCredit in Canada Now!
Having the ability to access cash when needed is crucial in today’s economy. With job closures, layoffs and all of life’s unforeseen circumstances, a secured line of credit is a necessary lifeline.
Call Us: 1-855-668-3074
Approvals within 24 hours
Home Equity Lines of Credit – Turnedaway.ca
Learn about home equity lines of credit in Canada and how TurnedAway.ca can help you get your mortgage approved.
New and ongoing financial challenges are common in today’s economy as shown in the continuing rise of job losses and unemployment. The ability to borrow money is critical in times of uncertainty, and having a homeowner’s line of credit can help get through these tough times.
If you have bad credit and have been denied a line of credit by your bank, getting a HELOC is still possible. We can help you get quick approval.
New and ongoing financial challenges are common in today’s economy as shown in the continuing rise of job losses and unemployment. The ability to borrow money is critical in times of uncertainty, and having a homeowner’s line of credit can help get through these tough times.
If you have bad credit and have been denied a line of credit by your bank, getting a HELOC is still possible. We can help you get quick approval.
What are HELOCs in Canada?
A Home Equity Line of Credit (HELOC) is a revolving line of credit that allows you to borrow against the equity in your home.
- You can borrow money up to a pre-set limit determined by the lender.
- You can use as little or as much of the line of credit as you need.
While a secured LOC is typically a better option for people with poor credit, understanding the difference between a secured and unsecured line of credit can help you communicate your loan needs to a mortgage broker or lender.
How Do HELOCs Work in Canada?
Applying for a home equity line of credit and getting approved is similar to refinancing your home. You would pay loan processing, origination, appraisal and recording fees. Here are a few important points on how HELOCs work in Canada:
- You can borrow money up to a pre-set limit determined by the lender.
- Similar to a credit card, the amount of available credit is renewed when you pay down your outstanding balance.
- During the loan period, you can borrow amounts depending on your needs.
- The borrower only needs to make interest payments based on the amount owed, just like a credit card but with a MUCH lower rate.
We make the process easier by helping you connect to the right lenders who can offer a HELOC that fits your needs.
What can HELOC be Used for?
HELOCs offer homeowners a flexible line of credit that isn’t limited to making home-related purchases or expenses and allows you to use the funds for a wide variety of purposes, including use for:
- Medical bills
- Education costs
- Large purchases
- Debt consolidation
- Bridging cash flow gaps
— all while utilizing your home as collateral. So, if you need financial help to cover these or other expenses, call one of our experts, and we’ll find the best solution that meets your needs.
What is the Difference Between a Secured and Unsecured Line of Credit?
The most significant difference between a secured and unsecured line of credit is collateral. The collateral determines the degree of loan risk held by the lender from the borrower.
Unsecured Line of Credit
Unsecured LOCs do not require the borrower to use any collateral to get a loan. Lenders take on considerably more risk when there is no collateral to secure the loan, so traditional financial institutions typically don’t offer unsecured lines of credit to anyone with a credit score below 740.
An unsecured line of credit:
- Usually comes with lower limits, higher monthly payments, and higher (sometimes much higher) interest rates since collateral is not required
- Are typically harder to get, especially for those with bad credit, since the lender has less recourse if the borrower defaults
- May require a co-signer if the applicant has a low credit score
- Examples of unsecured loans include credit cards and personal loans
Payday and peer-to-peer lenders will lend to those with bad credit without collateral. However, these types of loans are typically the most expensive way to borrow money mainly due to high interest rates.
Secured Line of Credit
Secured LOC is guaranteed by collateral, in many cases, a home or car. The borrower assumes most of the risk with a secured LOC since they could lose their collateral to the lender if they cannot repay the loan.
An secured line of credit:
- Usually comes with a lower interest rate and higher credit limit than unsecured LOCs
- Often has a lower monthly minimum payment
- Typically, the most affordable way to borrow money
- Available to those with lower credit scores since the borrower puts up a collateral
Homeowners can get a secure LOC through home equity financing.
Get The Flexibility and Convenience to Borrow What You Need!
Even if you’ve been turned away by other lenders, our team is here to help. Apply today and see how TurnedAway.ca can help.
Who is Eligible to Apply for HELOCs in Canada?
A HELOC is most suitable for homeowners who have accumulated equity in their home and need a flexible source of funds for current of upcoming expenses.
Additionally, HELOCs are beneficial for individuals wanting to consolidate their debt or manage short-term cash flow challenges.
How Do I Qualify for A HELOC in Canada?
The qualification process is similar to mortgage refinance. To qualify, you must meet the specific criteria. Although the exact home equity line of credit requirements will vary between lenders, typically, you will need the following:
- Proof of income
- Bruised credit is OK
- At least 15%-20% home equity
- Previous payment history
- Low Debt To Income (DTI) ratio
At TurnedAway.ca, we can help you get approved for a HELOC.
Home Equity Loan vs Line of Credit
There are two main home equity financing options for homeowners: a home equity loan and a home equity line of credit (HELOC). These loans do not impact an existing first mortgage, and approvals are based on the amount of equity accumulated in the home.
Home Equity Loan
A home equity loan allows you to apply for and borrow one lump sum of money. Depending on the loan terms, a home equity loan is repaid at a fixed interest rate in regular installments over a fixed number of years. Unlike a HELOC, you cannot “re-borrow” money paid back to a home equity loan
Home Equity Line of Credit (HELOC)
A home equity line of credit (HELOC) allows you to borrow funds as needed up to the approved limit.
HELOCs offer variable interest rates and interest-only payments, making them a flexible option for debt consolidation. With or without poor credit, working with a specialized mortgage broker can increase your chances of qualifying for a HELOC.
TurnedAway.ca provides home equity loans for people in Canada whom other lenders have turned away due to poor credit or income limitations. Apply online today for a no-obligation quote.
What are the Benefits of a Secured Line of Credit in Canada?
A HELOC is an excellent option for homeowners who need cash and want to reduce other forms of high-interest debt. It offers considerable benefits to homeowners in Canada, including the following:
- Easy access to funds at low rates (making them a cheaper alternative to personal lines of credit or unsecured loans)
- Only pay what you owe plus monthly interest
- You can pay off the principal at your own pace
- You can use HELOCs for just about anything
HELOCs are flexible and cost-effective loans that are beneficial for homeowners. However, obtaining one may be challenging, especially with bad credit.
Thankfully, some lenders focus more on the equity in your home than your income or credit score. Turnedaway.ca can connect you with these lenders. Call today at 1-855-668-3074.
How To Get A HELOC Loan?
The HELOC application process varies depending on the lender. However, in general, you must follow these steps when applying for a HELOC:
- Get your free credit report to get further insight into your financial health and how lenders will view your application.
- Gather all the information you need to assess your capability of fulfilling debt payments, including financial resources, employment details, liabilities and other relevant documents.
- Look for a suitable lender and compare their rates and terms to find the one that meets your needs.
- Provide the information and requirements requested in the application.
- After a lender assesses your application, someone will be in touch to verify your job history and organize an appraisal, if necessary, to verify the market value of your property.
- The loan officer will send you the final terms of your HELOC and arrange the closing date. Once the terms have been thoroughly reviewed, sign the paperwork to access your new line of credit.
With TurnedAway.ca, we’ll make the process easier and faster for you. We’ll connect you with the right lenders and get a HELOC at the most competitive rates.
Current Canada HELOC Rates
The interest rates for HELOCs differ from one lender to another and depend on various factors, such as:
- Your credit scores
- Current debts
- The amount you intend to borrow
Typically, HELOC rates are linked to the prime rate, and this is the lowest interest rate that lenders can offer to their most creditworthy borrowers.
To determine the interest rate for a borrower, lenders assess their financial and credit profile and add a margin to the prime rate. For instance, if a borrower is given a margin of 1.45% on a prime rate of 7.5%, their interest rate will be 8.95%.
How Much Can You Borrow with Equity Loans?
Lenders underwrite equity loans similarly to other home loans, that is, based on the property value and the borrower’s creditworthiness. The combined loan-to-value (CLTV) ratio expresses the maximum percentage lenders can approve that is secured against your home’s value.
Here’s an example:
If your home is valued at $300,000, and the bank you’re working with offers a maximum CLTV ratio of 80% while you currently owe $150,000 on your first mortgage, you could be eligible to borrow up to $90,000 through a HELOC or home equity loan ($300,000 x 0.80 = $240,000 – $150,000 = $90,000).
Take Charge of Your Finances Today!
We understand your individual circumstances and are committed to helping you get the financing you deserve.
Is it Difficult to Get a Secured Line of Credit in Canada?
Lenders typically require a stable income, acceptable income-to-debt ratio, and a decent credit score before approving a home equity line of credit.
In Canada, a credit score of 680 or above qualifies for the best interest rates, while lower scores result in higher rates and make it harder to qualify with a lender.
Those with poor credit usually need a co-signer or must wait for their credit to improve to borrow from big banks, which can be a challenge for those already facing financial difficulties.
At TurnedAway.ca, we understand how difficult it can be to get a secured line of credit with bad credit. That’s why we are here to help make the process easier. Book a call with our experts now.
Can You Get a Secured Line of Credit with Bad Credit in Canada?
If you have bad credit, major banks are likely to turn down your line of credit application. Taking the following steps can help increase your chances of qualifying for a HELOC with alternative lenders:
- Order your credit report. You can obtain a free copy of your credit report from the Financial Consumer Agency of Canada website. Knowing your credit score can help when speaking with mortgage brokers and lenders.
- Correct any errors on your credit report. It is not uncommon for credit reports to contain errors that hurt your credit score. Correcting credit report errors may not raise a low credit score by much, but it certainly can’t hurt.
- Determine how much you can borrow. To find out how much equity you have in your home, subtract any existing mortgages or liens from the estimated current value of your property. Then use this home equity calculator to determine how much you can borrow.
- Contact a mortgage broker who matches borrowers that big banks have turned down with lenders that work with poor credit applications. They help clients secure HELOCs with poor credit, and they can also help you get the best possible rate.
Pros and Cons of HELOCs
HELOCs offer lower interest rates and flexibility in borrowing. However, as with any loan, there are risks to consider, particularly for loans secured by your home. Here are factors to keep in mind when getting a HELOC:
Pros:
- You'll have less upfront costs than with home equity loans.
- Compared to credit cards, they have lower interest rates.
- There are typically no closing costs.
- Interest is only charged for money used.
Cons:
- Lenders may necessitate a minimum number of draws.
- Interest rates are typically variable and can move both upwards and downwards.
- Late payments can damage your credit and put your home at risk.
- Income and credit are given more consideration than when applying for a home equity loan because the money is re-advanceable.
While a HELOC may come with its drawbacks, the guidance of an experienced mortgage broker can transform it into a valuable financial tool – contact us today to learn more.
Secured Lines of Credit for Bad Credit in Ontario
With over 30 years of experience, Turnedaway.ca can help you obtain financing with a secured line of credit in Ontario even with bad credit. By working with lenders across Canada, we can help you be approved for home equity loans and home equity lines of credit with flexible terms and competitive rates – apply online or call 1-855-668-3074 for a no-obligation quote today.
We’re proud to be top-rated among clients in Canada.
Not all lenders provide second mortgages since they come with more risk. But there are usually three options you can explore:
Revenue Canada had put a lien on my home and had frozen my bank account. I went to see a tax lawyer thinking they could help and surprisingly they referred me to you. I was under the impression that nobody would refinance tax debt, at least that’s what my bank told me. It didn’t take long to find out they were wrong and I am still counting my lucky stars they were. Thanks again for everything you did for my family.
Reid T.
Fast, experienced and attentive. I thought I was destitute but after a call to turnedaway.ca I found out there were a lot of alternatives for someone in my situation. I made excellent money but couldn’t really show it on paper ruling out traditional banks. Pauline from your office was truly fantastic and she got my approval in less than 48 hours…. amazing!
Val K.
We are very happy with your service and will be using you again in the future, and you have been so kind and helpful in this difficult time with my having to deal with my Mothers health issues. Your work allowed for me to focus and be less stressed over the life events that are occurring for myself.
John C.
I am self employed and because a lot of my income wasn’t being reported in the traditional sense I couldn’t get any money out of my house using our equity from a traditional bank. I still can’t believe how simple you guys made it for me. I still can’t believe that you were able to get me approved at a bank when my own mortgage company wouldn’t even look at my application. You guys rock!
James R.
