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Home Equity Loans.

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K.M. - Toronto Homeowner

Home Equity Loans in Ontario, British Columbia and Nova Scotia
What Is A Home Equity Loan?

What is a Home Equity Loan?

Unlock your home equity.

A home equity loan is secured against a homeowner’s property, allowing them to access their equity for many purposes. The phrase home equity loan is loosely tossed around and sometimes causes confusion and leaves homeowners to believe they can automatically qualify for a home equity loan by having equity in their home. While, to some degree, this is the case, traditional (A-lenders) and alternative (B-lenders) have stringent underwriting requirements and policies. While homeowners with equity are candidates for home equity loans, approvals are subject to homeowners’ income and credit profile and other factors, such as the location and condition of their property, to determine whether they qualify for traditional, alternative or private mortgage financing, the latter being a costlier, short-term option. At the end of the day, home equity loans are essentially mortgages, as they’re loans secured against real estate, as first or second mortgages with traditional and alternative lenders or in third position by private lenders. Home equity loans are an efficient method for homeowners to access funds for many reasons, including home renovations, consolidating higher interest rate debt, emergency expenses and business operating capital for self-employed individuals. Home equity is the difference between the fair market value of a homeowner’s property and the balance of any outstanding mortgages. For instance, if a client’s property is worth $500,000 and they have an existing 1st mortgage of $250,000, there is $250,000 of home equity. Homeowners can usually obtain home equity loans up to 80% of the appraised value of their property. Using the previous email, if the homeowner’s home appraises for $500,000, they might qualify to obtain a home equity loan up to $400,000, an additional $150,000 on top of the existing $250,000 mortgage. While real estate values in Canada have grown quite rapidly, thus providing an enticing borrowing option for homeowners, there are many worthy points of consideration that DV Capital, an experienced firm, assists its clients in understanding while exploring an array of home equity loan options from traditional (A-lenders), alternative (B-lenders) and equity-based approvals from private mortgage lenders even if homeowners have been turned down elsewhere. For a cost-free, confidential discussion and to learn more about home equity loans, please do not hesitate to contact DV Capital for assistance across Ontario, British Columbia or Nova Scotia.

How does a Home Equity Loan work?

Best Home Equity Loan Lender.

Home equity loans are secured against homeowner’s property, allowing them to access their home equity for many purposes. Home equity loans are typically registered against homeowners’ real estate in first and second position and less often in third position. For homeowners who do not have a mortgage, home equity loan or line of credit secured against their home and want a home equity loan, DV Capital will help them explore potential options based on their circumstances and borrowing requirements. For homeowners with an existing first mortgage seeking additional funds, DV Capital will help them assess the pros and cons of replacing their existing first mortgage or leaving their existing first mortgage in priority and exploring a second mortgage. Many factors go into this review process, especially how the existing interest rate compares to market rates that the homeowner can qualify for; it is possible that in a higher interest rate environment, whether their income and credit profile have diminished or improved, homeowners might not be able to qualify for their existing mortgage balance, much less additional funds. Homeowners typically access their home equity to consolidate higher interest rate debts, complete home renovations, for business operating capital for self-employed individuals, or to purchase a second property, such as an investment property or a cottage. DV Capital helps homeowners and real estate investors access home equity with home equity loans from many funding sources, including traditional (A-lenders), alternative (B-lenders) and private home equity loan lenders. In other words, in most cases, provided sufficient equity, homeowners might qualify for home equity loans even if they’ve declined elsewhere for home equity loans. DV Capital works relentlessly to help its clients obtain home equity loans and secure low home equity loan interest rates based on its diverse network of home equity loan lenders and client’s circumstances. Home equity loans in Ontario, British Columbia and Nova Scotia are DV Capital’s specialty.

How Does A Home Equity Loan Work?
Home Equity Line of Credit

Home Equity Line of Credit.

Apply Online For a Home Equity Line of Credit.

Home equity lines of credit (HELOC) are similar to home equity loans in that they’re both borrowing facilities registered against one’s home; however, home equity loans are structured as term loans, amortized and repayable in scheduled installments, such as monthly payments, and home equity lines of credit structured as revolving credit facilities. Home equity lines of credit typically have a total authorized limit approved and imposed by the mortgage lender, and homeowners can draw as much or as little money as they desire at any time and pay interest only on funds advanced. Interest rates on home equity lines of credit (HELOC) differ from traditional mortgage interest rates. A home equity line of credit can be an excellent borrowing facility for homeowners, self-employed individuals and real estate investors. Home equity lines of credit (HELOC) are borrowing facilities for business operating capital, act as a safety net for emergency expenses and are used for everyday expenses. Traditional (A-lenders) and alternative (B-lenders) provide home equity lines of credit to homeowners with acceptable income and credit profiles who can pass the mortgage stress test, similar to home equity loans. Home equity lines of credit are either provided on a standalone basis in 1st or 2nd position on title or registered in one charge in conjunction with an amortized mortgage component. Sometimes, mortgage lenders will provide what are known as all-indebted mortgages that will include a mortgage, line of credit and other products, such as a loan or a credit card, that get registered on title as collateral charges. In either case, home equity lines of credit, at least with traditional and alternative mortgage lenders, cannot exceed 65% of the purchase price or appraised value. Interest rates on home equity lines of credit have a relationship to the Prime lending rate; for example, a lender might approve a homeowner for a home equity line of credit limit of $500,000 at Prime + 1%, and so, as Prime fluctuates, the cost of funds will as well. DV Capital provides home equity lines of credit to homebuyers, homeowners, real estate investors, commercial real estate owners and custom home builders in Ontario, British Columbia and Nova Scotia. 

Net Worth Mortgage Programs.

how do net worth mortgage programs work?

Although not aggressively advertised, some mortgage lenders offer net worth mortgage programs to eligible homeowners and homebuyers when income levels alone do not meet standard debt servicing guidelines. Net worth refers to financial assets, such as savings and qualified investments, less liabilities. Mortgage lenders require borrowers to provide evidence that they hold a minimum dollar amount of assets and or assets representing a percentage of the requested mortgage amount. Net worth mortgage programs may have loan-to-value limitations, especially when debt service ratios reach or exceed certain thresholds. Purchase down payments generally aren’t included in the total net worth requirements. Although lenders use discretion with net worth mortgage programs, OSFI-regulated lenders must still abide by underwriting best practices; therefore, net worth programs are subject to many requirements, and approvals aren’t, by any means, walks in the park. To discuss if a net worth mortgage program might be helpful if you are looking to purchase or refinance a home in Ontario, British Columbia or Nova Scotia, please do not hesitate to contact us 7-days a week. 

Net Worth Mortgage Programs
Home Equity Loan Pros and Cons
Home Equity Loan Pros & Cons.

Best Home Equity Loan Lenders & Rates.

 
  • Home equity loans are relatively easily obtainable. 
  • You might qualify to access your home equity if denied elsewhere.
  • Borrow anywhere from $20,000 – $5,000,000 and more. 
  • Borrow up to 80% of the home value (+ with additional collateral).
  • Flexible and informal mortgage stress-testing.
  • Same day indications of mortgage approvals. 
  • No ‘maximum door policy’ for real estate investors. 
  • Flexible debt servicing requirements.
  • Flexible-to-no minimum credit score requirements. 
  • Custom term lengths with flexible prepayment penalties. 
  • Apply online for home equity loans & home equity lines of credit.
  • Home equity loans in 1st, 2nd and 3rd position. 
  • Self-employed individuals can obtain a home equity loan. 
  • Homeowners with bad credit can obtain a home equity loan. 
  • Mortgage approvals for mobile homes on leased land.
  • Mortgage approvals in urban, suburban and rural locations.
  • Home equity loans are possible with equity-based lending. 
  • Home equity loans in Ontario, British Columbia & Nova Scotia.
Reasons for a Home equity loan.

Use your equity how you'd like.

  • Home renovations using a home equity loan or HELOC.
  • Consolidate high interest debt from a home equity loan or HELOC.
  • Improve your credit score.
  • An alternative to consumer proposal or bankruptcy for debt relief.
  • Spousal buyout mortgage to retain ownership of your home. 
  • Emergency funds for unexpected expenses. 
  • Funds for a deposit or down payment for another purchase. 
  • Fix your mortgage arrears, property tax arrears & CRA arrears.
  • Stop a power of sale and protect your home equity. 
  • Utilize funds for tax preparation, filing, and CRA balance owing.
  • Use your hard earned equity, when, and how you need it. 
  • Access to industry low home equity loan rates & HELOC rates.
  • Access some of the best home equity loan lenders.
  • Refinance an existing first, second or third mortgage.
  • Discharge from consumer proposal, bankruptcy or credit counselling. 
  • Direct access to some of the best HELOC companies. 
  • Home equity construction loans for builders and homeowners. 
  • Business operating capital for self-employed individuals. 
Reasons for a Home Equity Loan
Home Equity Loan Lenders
Best Home Equity Loan Lenders.

Best Home Equity Loans in Canada.

DV Capital helps its clients navigate the mortgage market and understand potential home equity loan and home equity line of credit borrowing options. Ultimately, the best home equity loan lender is the lender that provides competitive pricing relative to the homeowner’s borrowing objectives and circumstances. Above all, homebuyers and homeowners want to understand they’re dealing with a licensed mortgage firm with many years of experience approving and funding thousands of home equity loans. DV Capital is a one-stop shop for home equity loans; their broker advisory department obtains fiercely competitive home equity loans through relationships with institutional lenders, and for clients who cannot qualify for traditional or alternative lending, DV Capital can act as a direct private home equity loan lender. In many cases, DV Capital gets approached by homeowners who often feel frustrated and believe they’ve run out of options after being turned down elsewhere, usually by their existing mortgage lender. For self-employed homeowners, those with imperfect credit, or have been turned down elsewhere, DV Capital will do its best to help you obtain home equity loans while doing all the heavy lifting and negotiating, using a common sense approach across Ontario, British Columbia and Nova Scotia. 

Home Equity loan Rates & approvals.

Private Home Equity Loan Lenders.

DV Capital makes applying for a home equity loan or a home equity line of credit as simple and convenient as possible with their online mortgage application that can accessed and completed using a smartphone or desktop, anywhere, at any time. Fully equipped to provide homeowners and homebuyers with some of the best and lowest home equity loan rates and home equity line of credit rates in Canada, DV Capital also provides services that most banks simply can’t. Regardless of the handful of reasons why traditional and alternative lenders might deny an approval, whether it be related to the property type, location or condition, the client’s income or credit profile, their debt servicing ratios or inability to pass the mortgage stress test, DV Capital can provide equity-focused mortgage approvals that open doors, that most other lenders will and keep closed. In most cases, our private mortgage options could provide home equity loans and home equity lines of credit with flexible underwriting guidelines that unlock approvals based on sufficient equity for clients of all income and credit profiles that own or are purchasing real estate in urban, suburban or remote locations across Ontario, British Columbia or Nova Scotia.

Home Equity Loan Rates and Approvals

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