If you have owned a property for any length of time, you will have built equity in it. The longer you have owned it and paid down the mortgage, the more equity there is. The amount of equity is also determined by the value of the property. So, how can you take advantage of the equity built up in the property itself, to generate funds that you need or want for other things?
The process is to take out an Equity Mortgage based on the difference between what the property is worth and what you owe in a first mortgage. For example, if your property is worth $400,000 and your mortgage is $250,000, then you have $150,000 in equity. You can then take out an Equity Mortgage for up to 80% loan to value. This is based on a credit score of at least 600.
Some of the things that you might want extra funds for are:
If you think that you have the Equity in your property to avail yourself of this kind of funding, we can help.
the equity in your property is determined by the value minus the current mortgage balance.
Example, if your property is worth $400,000 and you owe $200,000, you have $200,000 worth of equity.
You can obtain what is called a HELOC (Home Equity Line of Credit) or secured line of credit.
When your current mortgage expires and you need to refinance, you will refinance the current mortgage balance and you can then use the equity for the HELOC, or secured line of credit.
Funds are available from the lender, and can be obtained by cheque or debit card.
You can borrow up to 80% of the loan to value.
If you make your mortgage payments and housing prices rise, you could build equity quickly. you will begin building equity right away.
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