Most residents of Mississauga will need access to cash at some point. You can use credit cards or some other form of unsecured loan, but if you are a homeowner there is another option – and that is to borrow against the equity in your home. A home equity line of credit or HELOC is a revolving line of credit that lets you tap into the equity of your home to get the cash that you need.
It works similar to a personal line of credit with the main distinction being that the loan is secured by your home equity. Because it is a secured loan, you can usually get a better interest rate with a HELOC than you can with a personal line of credit – and since most lenders will allow you to borrow up to 80% of your home equity, the amount you can get approved for can be quite substantial.
The following are a few of the benefits to getting a home equity line of credit in Mississauga:
1.Low interest rates.
As we have already discussed, HELOCs tend to have much lower interest rates than other forms of loans.
2.Fast approval.
Since the approval of your HELOC is based on the value of your home, you don’t have to jump through a lot of hoops to get approved. This makes a HELOC a good choice when you need to get quick approval for your loan.
3.Pay for major expenses.
Because home prices in Mississauga have gone up dramatically in recent years, chances are you have a lot of equity in your home – meaning you may qualify for quite a large loan with a HELOC. This makes it an ideal tool for funding major expenses such as a home renovation or business investment.
4.Consolidate your debt.
If you have other more high-interest debt, using a home equity line of credit can be a way to consolidate that debt so that you are making only one monthly payment at a much lower interest rate.
5.Improve your credit.
As long as you use your HELOC and continue to make the minimum payments, then it can be a great tool to help you build and improve your credit.
6.Have emergency cash.
You never know when you might be in an emergency situation (like an unexpected vehicle repair or medical emergency) that requires cash. Even if you don’t think you need a HELOC now, applying for one today can give you peace of mind that you will have cash available to you in the event of an emergency.
To learn more about the benefits of having a home equity loan in Mississauga or to apply for one, contact Akal Mortgages today.
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