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What is a secured line of credit in Canada?
There are two types of lines of credit that are offered by banks, secured and unsecured. An unsecured line of credit or personal line of credit, does not require collateral and usually comes with smaller limits and higher monthly payments and rates.
A secured LOC uses your home as collateral. It is most often referred to as a HELOC or (home equity line of credit). Because HELOCs use your home as collateral, they usually come with a low-interest rate, high credit limit and have lower monthly payments. They are just like a credit card because they come with an access card and are a form of revolving credit, without the nosebleed interest rate.
Having the ability to leverage cash flow is crucial in today’s economy. Besides with the number of job closures, layoffs and all of life’s unforeseen circumstances, access to a credit line can make a world of difference.
Secured credit lines are a terrific option but they are becoming more difficult to get from the big banks. With new rules constantly being implemented by the government, it can be a real challenge to borrow against the equity in your home. These regulations force big banks to scrutinize your income and credit.
What are the benefits of a secured line of credit in Canada?
A home equity line of credit is an excellent option for cash-strapped homeowners. Also, secured credit lines can be used to consolidate higher interest debt and provide access to cash when needed.
The best part about a home equity line of credit is that you only pay on what you owe. Additionally, you only have to pay the interest that accumulates monthly. Another great feature allows you to pay as much as you want towards the principal owing at any time.
You can also reuse the amount you have paid down at any time, just like a credit card. You can use a home equity line of credit for just about anything. With a home equity line of credit you can:
- Consolidate High-Interest Credit Cards & Loans
- Renovate Your Home
- Cover Education Costs
Home equity lines of credit are perhaps the most flexible and cost-effective products a homeowner can have. Usually, the challenge is often figuring out how to secure one, especially if you have bad credit.
Secured lines of credit Ontario – bad credit.
Fortunately for homeowners, there are a number of lenders who have identified secured lines of credit as a sensible way to gain access to home equity.
For common sense lenders who want to make equity lines of credit readily available for qualified clients, these loans are logical ways for borrowers to use equity without selling or completely refinancing.
In short, knowing which lenders to approach and how to submit an application for optimal approval is imperative. Having an experienced broker on your side can mean the difference between a successful approval or being turned away.
Turnedaway.ca has been helping clients arrange secured lines of credit for over 30 years. Our exceptional, long-term relationships with the mortgage lending world translate into approvals with the best rates and flexible terms.
So, perhaps you are looking for a secured line of credit to clear up high-interest credit card debt? Maybe it’s time to renovate your home? Even if it’s simply to have access to money for your peace of mind, we can help. Bad credit doesn’t have to mean turned down.
To summarize, if your application for a HELOC has been turned away by your financial institution, contact us today 1-855-668-3074 or apply online. We will provide you with a no-obligation quote.
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.