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Home Equity Loans – A Guide For All Canadians!

Home Equity Loans – A Guide For All Canadians!

For many, the concept of a home equity loan is new and perhaps something they are not familiar with. If this sounds like you and you are asking the question, “What is a home equity loan” the team at E2E Financial can help you with the answer!

This quick, handy guide for all Canadians will give you the answers you need to be able to make a decision about whether a home equity loan is right for you, along with information on where and how to obtain a home equity loan. Working with E2E, it’s easier than you think!

What is a Home Equity Loan?

Simply put, a home equity loan is one that allows you to access funds based on the equity you already have – your home! You’ve been investing in your home for years, now a home equity loan allows you to borrow some of that past investment back, in order to help finance your future. It’s like loaning money to yourself!

The Financial Definition of a Home Equity Loan:

A home equity loan is a “type of loan in which the borrower uses the equity (value) of their own home as collateral” in order to borrow money. The loan amount is typically determined by the value of the property you are borrowing against. That value is usually determined by an appraiser hired by the lending institution with whom you are working.

Home Equity Loans and Market Value

A home equity loan will be based on the approximate market value of your home. As stated in the previous point, that value will be determined in consultation with an appraiser and/or the lending institution and will include a thorough evaluation of the real estate market in your area. Certain “caps” will still apply however including:

  • The mortgage amount outstanding (you can’t borrow more than you have already invested/paid off on your mortgage.)

  • The total amount the lending institution is willing to finance – this will vary from firm to firm.

  • The value of your home (even if your mortgage is fully paid off you cannot borrow more than your home is worth!)

How Can You Use a Home Equity Loan?

People use home equity loans for a variety of reasons. It could be that you wish to make some renovations to improve and upgrade your home or to fund a small business venture you’ve been dreaming about. Perhaps it’s a retirement vacation you’d like to take while you are still healthy, young and can afford to repay the loan amount.

Maybe you have some outstanding debt you’d like to consolidate into one, lower monthly payment with a more favourable interest rate. Whatever your personal reasons for needing a home equity loan, working with a mortgage broker, a financial planner or the team at E2E Financial is the first step toward understanding what you can borrow, when you can borrow and what the cost of borrowing might be.

At E2E Financial we work together with all Canadians, whether new to this country or third and fourth generation! We’ll help you understand the terms of your existing mortgage, use a home equity calculator to estimate the equity in your home and look for lending opportunities that best meet your needs. We’ll help you:

  • Find favourable interest rates (whether fixed or variable.)

  • Obtain the credit approval you need to succeed.

We work with traditional lenders and we explore a variety of other alternatives that might be available and which might be better suited to you and your financial situation - including helping folks with bruised and damaged credit scores.

The length of the term, applicable fees, repayment schedules – we’ll walk you through the home equity loan process every step of the way. Contact us for a free consultation or review our online application to get a sense of the information we’ll need to help you secure a home equity loan today.

Succeeding Together:

E2E Financial Provides Speedy Solutions for Personal, Business, Construction and Commercial Financing and Loans!

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1 Comment

Pramod R. Sami
Pramod R. Sami
Nov 18, 2021

E2E Financial Solutions was tremendously helpful in getting the Home Equity Loan approved for my immediate needs and have made the process simple and fast with no hassle our way. Moreover, the team at E2E Financial Solutions was great in discoursing all the information before hand and had made our experience worthwhile so that we could make an informed decision.

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