Want to check our more video? Click here!
What is a secured line of credit in Canada?
There are two types of lines of credit that banks offer, secured and unsecured. Equally important, these lines are offered with both a fixed rate or variable interest rates. Furthermore, an unsecured line of credit, does not require collateral.
Of course, they usually come with smaller limits and higher monthly payments. Also, you can usually expect a higher interest rate as well.
In contrast, a secured LOC uses your home as collateral. They are most often referred to as a HELOC or (home equity line of credit). Comparatively, because HELOCs use your home as collateral, they usually come with a low-interest rate and a higher credit limit. Likewise, you can also expect a lower monthly minimum payment.
All in all, it’s the way to go if you need to borrow money for a debt consolidation. They are much more flexible than a home equity loan but are slightly harder to qualify for.
Home Equity Lines have terms and conditions similar to a credit card. They come with an access card and can be linked to your chequing account for convenience. Furthermore, they are a form of revolving credit but don’t come with a nosebleed interest rate.
Having the ability to borrow money is crucial in today’s economy. With job closures, layoffs and life’s unforeseen circumstances, access to a credit line can make a world of difference.
Secured credit lines are a terrific option. Sadly, they are becoming more difficult to get from the big banks. Ultimately though, new government rules, are making it harder 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 great option for cash-strapped homeowners. Also, secured credit lines can be used to reduce higher interest debt. Moreover, they can provide access to cash when needed, often at the lowest rate possible. And, they are a much cheaper alternative to personal lines of credit or unsecured loans.
In fact, the best part about a home equity line of credit is that you only pay on what you owe. Likewise, you only have to pay the monthly interest that has built up. Additionally, you can make minimal payments or pay a large lump sum should you choose to. Ultimately, this allows you to pay as much as you want towards the principal owing at any time.
Not to mention, you can also reuse the amount you have paid down at any time, just like a credit card. Of course, you can even monitor your HELOC via online banking. In addition, you can use a home equity line of credit for just about anything. In fact, with a line of credit heloc you can:
- Consolidate High-Interest Credit Cards & Loans
- Home Renovations
- Be Prepared for Unexpected Expenses
- Cover Education Costs
Whereas personal loans are rigid and expensive, home equity lines of credit are flexible and cost-effective. Consequently, they are perhaps one of the best 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 work with poor credit. Above all, they are often willing to overlook credit issues where a homeowner has equity. Regardless, having a skilled mortgage broker on your side can mean the difference between an approval or being turned away.
In short, Turnedaway.ca has been helping clients arrange financing for over 30 years. In particular, we pride ourselves on arranging the best rates and flexible terms even if your credit score isn’t perfect.
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 and get 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.
I 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.