HOME EQUITY LOANS IN PICKERING
WHAT CAN YOU USE A HOME EQUITY LOAN FOR?
By using your house as an equity, you can get yourself a home equity loan. The home equity is the real property value of your house, the difference of your home’s fair market value and the outstanding balance of all liens on the property. So by using this definition, a home equity loan is a type of a loan in which the borrower uses the equity of his or her home as collateral. The loan amount is determined by the value of the property and the value of the property determined by an appraiser from the lender’s party.
That sounds great, but the amount would be quite big as you would imagine, what exactly will you use it for then? Mostly people use it to clear big payments, such as credit card payments, outstanding debts, tuition fees for their children’s college, or in some cases renovation of your home. Because in essence, it is still a loan and you can use it like any other loan.
WHY GET A HOME EQUITY LOAN?
Why not take a regular loan from a bank or some other place. Why take a home equity loan?
There are three major advantages that home equity loans have over regular loans. Firstly, they have lower interest rates. Home equity loans typically have much lower interest rates than credit card APRs. This type of loan is considered “secured” by the collateral of your home, so lenders are more confident in your ability to pay your debt. Lower risk means lower rates. Secondly, there is also the benefit of potential tax deduction. 100% of your home equity loan interest payments may be tax deductible, which may not be the case with credit card debt. You will need to check in with your tax advisor to see if you qualify, as this is a conditional benefit. And last but not the least; we have the benefit of large amounts of money that the home equity loan gives. This allows you to easily clear any outstanding bills, debts, payments, and other such uses you would have.
CTMS caters to Pickering, Ajax, Whitby and other surrounding areas in the GTA & Durham.
Are you considering taking out an equity loan or line of credit? Contact us at (905) 509-8164 or message us to discuss all your options.
HOME EQUITY LOANS IN PICKERING
WHAT CAN YOU USE A HOME EQUITY LOAN FOR?
By using your house as an equity, you can get yourself a home equity loan. The home equity is the real property value of your house, the difference of your home’s fair market value and the outstanding balance of all liens on the property. So by using this definition, a home equity loan is a type of a loan in which the borrower uses the equity of his or her home as collateral. The loan amount is determined by the value of the property and the value of the property determined by an appraiser from the lender’s party.
That sounds great, but the amount would be quite big as you would imagine, what exactly will you use it for then? Mostly people use it to clear big payments, such as credit card payments, outstanding debts, tuition fees for their children’s college, or in some cases renovation of your home. Because in essence, it is still a loan and you can use it like any other loan.
WHY GET A HOME EQUITY LOAN?
Why not take a regular loan from a bank or some other place. Why take a home equity loan?
There are three major advantages that home equity loans have over regular loans. Firstly, they have lower interest rates. Home equity loans typically have much lower interest rates than credit card APRs. This type of loan is considered “secured” by the collateral of your home, so lenders are more confident in your ability to pay your debt. Lower risk means lower rates. Secondly, there is also the benefit of potential tax deduction. 100% of your home equity loan interest payments may be tax deductible, which may not be the case with credit card debt. You will need to check in with your tax advisor to see if you qualify, as this is a conditional benefit. And last but not the least; we have the benefit of large amounts of money that the home equity loan gives. This allows you to easily clear any outstanding bills, debts, payments, and other such uses you would have.
CTMS caters to Pickering, Ajax, Whitby and other surrounding areas in the GTA & Durham.
Are you considering taking out an equity loan or line of credit? Contact us at (905) 509-8164 or message us to discuss all your options.