Equity in a home is a powerful tool; As a homeowner, you can borrow against the equity in your home with a Canadalend loan. Equity in the home is the difference between the current appraised value of the home and the amount still owed on the first mortgage. With a Canadalend equity assessment, you can find out how much you can borrow against the equity in your home.

The lender will likely request an assessment of a property before issuing any sort of home equity product. The lender usually requires this assessment before loan approval to ensure that the loan amount is not more than the equity value in the home. The property appraisal is typically performed by a licensed individual who is trained to render expert opinion concerning property values. Canadalend equity assessments provide efforts to always ensure fair and optimal financial solutions.

A Home Equity Loan or a Home Equity Line of Credit?

Home Equity Loans and Home Equity Lines of Credit are often discussed together, but they are two unique products. They are both tied into your home’s equity, but they work in different ways. With a home equity loan, you will receive the money from the loan in one lump sum — it is similar to any other term loan where you have monthly payments. A home equity line of credit, on the other hand, is where the lender will issue you a credit amount that you can use when and if you need it, similar to a credit card.

How can a home equity loan help?

- Available with a fixed interest rate in order to avoid payment increases 

- Usually available with lower interest rates as opposed to credit cards

- You are able to consolidate multiple debts in one single, low interest payment

How can a home equity loan hurt?

- Since the loan is one lump sum, you will pay interest on the entire amount you borrow

- You could lose your home if you do not make the loan payments

How can an equity line of credit help?

- You are able to borrow the money as needed to avoid taking on debt all at once

- If you have the discipline not to use it unnecessarily, it can be an ideal emergency fund

How can an equity line of credit hurt?

- The interest rate is typically variable, so your payments could increase

- Discipline is required so that the funds are not used recklessly

- You could lose your home if you do not make the payments

If you are interested in a Canadalend equity assessment, or even if you just want to know what your options are, contact us today and a mortgage specialist will help you setup an appointment to help you with your options.