As home prices continue to rise across Ontario there is no surprise why homeowners are interested in tapping into their equity by means of home equity loans.
A home equity loan from Tembo Financial is an easy and flexible way for Ontario homeowners to increase their cash flow and get access to money when they need it most! The best thing about a home equity loan is that the money can be used for anything! Including paying off debt, paying for vacations or even that new car the family has always wanted.
What is home equity? – Home equity is the difference between the market value of your home versus the remaining balance of your mortgage.
What is a Home Equity Loan?
A home equity loan is a fixed rate, second mortgage that allows homeowner’s access to their real estate equity in one lump amount. Depending on the amount of equity available to the homeowners, a home equity loan could be tens or even hundreds of thousands of dollars.
John and Lucy own a home with a market value of $850,000 and have an outstanding mortgage balance of $350,000.00. At Tembo Financial they allow home equity loans in Ontario to be up to 80% of the homes market value. In this case, John and Lucy could get a home equity loan of up to $330,000.00 which can be used for paying off and consolidating debt, renovating their home or even going on a vacation.
Thinking of buying a second property? Home equity loans can help!
Many real estate investors use home equity loans as a fast and efficient way to purchase additional properties without the hassle of saving large sums for the down payment or even the purchase financing. Investors are able to leverage the equity from their other properties to purchase existing home, new construction or even pre construction.
Benefits of Home Equity Loans:
- Access your home equity fast and in one lump sum
- Home owners have the flexibility of using the funds for virtually any purpose.
- Often a cost-effective way of doing a debt consolidation on higher interest debts
*All home equity loans in Ontario are subject to credit and underwriting approval. Loan amounts and interest rates change based on each borrower’s situation. There are no guarantees that the outcomes from a home equity loan will be the same for all clients.