Q.What is a HELOC (Home Equity Line of Credit)?
Home Equity Line of Credit (HELOC) is a type of mortgage that is secured against your home. As you pay off your mortgage and build up equity in your home, a HELOC allows you to gain access to your home equity to use the funds you need. But keep in mind that you cannot exceed 65% of your home’s value. People usually use HELOC to:
- Consolidate high-interest debt (for example: pay off credit cards)
- Renovate their home
- Pay for higher education, expand your current business, etc…
Q. Why should I consider refinancing my existing Mortgage?
There are numerous reasons why borrowers may choose to refinance the mortgage they already have. Some of these include:
- Consolidate high-interest debts into a much better financial plan with:
- Lower rate
- Lower monthly payment
- Shortened mortgage terms
- Renovate your existing property
- Personal investments (i.e: expand your current business; pay for post-secondary education cost; purchase a new car…)
- Purchase an investment property
Q. Why should I consider home renovations?
When considering moving or renovating existing homes, people sometimes choose the former option. Sometimes it’s financially wiser to do the home renovations instead of moving because buying a new home will lead to several fees including land transfer fees, legal fees, realtor fees, updating new home costs, etc. A few key renovations can increase the value of your property. If you’re a homeowner we can help you get a home renovation loan based on your home’s equity.
Q.What documents are required to get a mortgage?
Since January, 1, 2018, the government imposed mortgage rules requiring us to collect more documents up front:
-Salary Letter from Employer
-Recent paystub (within 30 days of the completed application)
-Previous year T4
However, required documents vary from case to case. Please chat with us so we can do the heavy lifting for you.