Have you considered this popular alternative?
The biggest debt you are going to deal with as a property owner is your mortgage. With the right approvals, you are able to borrow against the equity of your house with a home equity loan.
What is a Home Equity Loan?
This style of loan is somewhat different to a home equity line of credit (HELOC), which is a line of revolving credit with a flexible interest rate. A home equity loan is a one-time lump-sum loan. Lenders are normally worry-free when contributing to your existing low mortgage rate since they are protected by the fact that your loan is secured against your house.
A Tool for Debt Consolidation
The main benefit of a home equity loan is in its debt consolidation abilities.
How do I get a Home Equity Loan?
The best way of obtaining a home equity loan is through a Canadian mortgage rate professional.
Benefits of a Home Equity Loan
- Money in your hands to settle outstanding high interest debts
- By paying off outstanding debts you are going to enhance your credit score
- The home equity loan may be spread over the lifespan of your best mortgage rate, typically as much as 25 years
- Tax deductions are readily available
Downsides of Home Equity Loans
- You will be jeopardizing your home if you do not have the means to pay the loan back.
- Once you borrow against your house you lose equity or ownership in the home.
Speak to a mortgage broker today to find out if this financial product is the right choice for you.