If you’ve been a homeowner for some time now, chances are your property value has increased significantly over the past several years. Life changes, things happen, and sometimes we find ourselves with more things to do than money in our pockets. So if you’ve got significant home equity and a desire to access it (for any reason), this quick summary of options is for you!
Standard Mortgage Refinance
If you’ve got great credit, a steady income, and you conform to typical lending guidelines, consider refinancing your existing mortgage. Interest rates are historically low right now and it never hurts to take a look at what mortgage products might be available to you now. As we’ve worked together in the past, all your information is on file and a review would be quick and easy.
Home Equity Line of Credit
Not sure that you want to take equity in a lump sum? No problems, that’s where a home equity line of credit comes in. If you qualify using standard guidelines, consider attaching a line of credit to your home. Rates here are usually tied to prime (plus a little), and you don’t pay interest unless you access the funds.
Alternative Lending or a Second Mortgage
If you find that you don’t quite fit in the standard “A financing box” (anymore), that’s just fine! A lot of us have mortgage applications that aren’t conforming for a variety of reasons. Alternative lending isn’t just for those people who have had credit setbacks (although they do a great job of servicing this group as well), it’s for people who do things differently. Don’t let the stigma of alternative lending keep you from considering what could be a great mortgage product for you!
A reverse mortgage allows Canadian home owners 55 or older to turn the equity in their home into tax free cash. There is no income or credit verification, and no repayments required on the mortgage. The interest rates are a little higher here than with a standard mortgage, however the qualifications are considerably more relaxed. Not the best option for everyone, but it might be a great option for you (or someone you know).
If you’ve got equity, and a desire to access it, let’s talk!
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