Are Home Equity Loans A Good Idea?
If you are a homeowner in BC, an equity loan can help you with debt consolidation, home improvement, or accessing cash for a one time expense. Just how much you can borrow on a home equity loan? By using the equity in your property as collateral, you can refinance up to 75% of your home’s value, depending on each lender’s requirements and your eligibility for a loan.
How To Get Approved For A Home Equity Loan
The approval process for equity loans is as simple as a quick phone call to one of our brokers. Or if you prefer, you can fill out our online contact form and we will call you back to assess your situation right over the phone.
The first step we’ll take when helping you get approved for a home equity loan is to determine if you are looking for a 1st, 2nd or 3rd mortgage. Once we have your main wants and needs asserted, and upon assessing the location of your property, we will send you out an application form so we can get the process started. In most cases, we will have an answer for you from our lenders in as little as 24 hours from when the application was submitted.
What’s the Difference Between a Home Equity Loan & HELOC
The approval of a home equity loan will be mostly based on your home’s equity, with factors such as age, income, or credit score counting less. With terms and conditions similar to personal loans, equity loans can help you achieve several financial goals. Depending on each lender, these products can come either with an interest only payment, or in certain cases, with an amortized payment.
A home equity line of credit, or a HELOC, is another financial bank product which allows you to borrow against your home’s equity. Unlike a home equity loan which gives you access to all the money at once, in a single lump sum, HELOCs have a credit line which you can draw from, much like when using a credit card. Before approving your loan, banks and credit unions will require you to pass through all the traditional banking guidelines like TDS & GDS ratios, along with credit and income verification.
Can You Get Equity Loans Anywhere In Vancouver & BC?
While location plays a large part in your home equity loan’s approval, our lenders will entertain most locations in British Columbia, including those areas which require an out of the box consideration. Keep in mind that properties in major centres usually receive the best rate loan solutions, while real estate in towns with smaller population bases will generally get a lower loan to value appraisal.
How Long Does It Take To Be Approved For a Home Equity Loan
Approvals for a home equity loan can take as little as 24 hours after reviewing your application. We have lenders that can fund fast “within 24 hours” of full application approval, and we have lenders that can fund at a lower cost. Although it’s difficult to marry these two options together, we always do our best to get you the best rates and most convenient closing costs in the shortest time. After approval, our average funding time is anywhere between 5 to 10 business days.
The factors which can affect closing are:
- appraisers’ availability
- lawyer’s availability
- title insurance delays
- bank delays in providing documents