Debt consolidation is a common way to ease the burden of household debt payments.
Home equity is the difference between the value of your home and the unpaid balance of your current mortgage. For example, if your home is worth $250,000 and you owe $150,000 dollars on your mortgage, you’d have $100,000 in home equity. (Our lenders will consider up to 80-85% loan-to-value, based on appraisal and review of an entire mortgage application.)
‘Debt consolidation’ is the process of combining two or more debts into one. It should result in a single debt payment and lower total interest costs. We have a network of Private Mortgage Lenders who will help you refinance the property and liquidate equity when you are in need.
Why borrow against home equity? Because in many cases, the cost of carrying higher-interest debt balances will take longer to pay down. A new consolidation loan with a single monthly payment will often relieve monthly household expenses. This program can apply to-
Credit card debts
Income tax/Property tax arrears
Multiple smaller loan balances outstanding
Mortgages or other accounts in arrears
There is no set maximum loan amount, but a minimum is usually $10,000.
Your home equity goes up in two ways:
- as you pay down your mortgage
- if the value of your home increases
- You may be able to borrow money that will be secured by your home equity.
Interest rates on loans secured with home equity can be much lower than other types of loans. You must be approved before you can borrow from your home equity. Be aware that you may have to sell your home if you’re unable to repay a home equity loan. In practice though, we try to find all alternatives to this measure so this does not wind up being the end result.
We lend in Alberta, BC & Manitoba. We arrange mortgage financing for clients with all types of credit profiles- from excellent to poor. For us, Equity is King. Alberta Home Loans has successes where many big banks fail. Purchases, refinances, renewals – Even properties in foreclosure.
We look at residential detached homes, condos, mobile homes on owned land, and raw land acreages. Commercial properties as well! We will consider properties up to 80% loan-to-value in larger urban areas, and reduced LTV`s in smaller, rural areas.
Call me today and I will help you start the process.