What is HELOC and How to Find the Best HELOC Rates?

 

HELOC stands for Home Equity Line of Credit, which is a revolving credit line that lets you borrow the equity in your home at remarkably low-interest rates, especially when compared to the traditional credit line. HELOC is an economical alternative to other credit lines such as personal loans, credit cards, etc.  You can find the best HELOC rates online with the help of trusted and reliable brokers. But before you go ahead with HELOC, it is important to learn more about it.

 

A quick guide to HELOC and best HELOC mortgage rates in Canada

When you take out a mortgage with HELOC, you can get pre-approved cash within your mortgage. When using money from HELOC, you are liable to pay the interest on HELOC money aside from the regular mortgage loan payments. Here, it is prudent to understand what home equity refers to? Home equity is your home’s current value minus the mortgage loan balance you still owe. Fundamentally, it is the amount of property ownership you’ve built up via mortgage rate appreciation & reduction by repaying the loan amount. Hence, when you pay back your mortgage and build equity in your home, you are eligible to borrow the funds again with the help of HELOC.  

 

Some of the benefits of HELOC include:

 

Flexibility due to the facility of revolving credit, no fixed payments, and the ability to repay and borrow money as you need. You just need to pay your monthly interest.

Lower interest rates as HELOC comes with amazingly lower interest rates compared to personal or other loans.

Emergency funds as HELOC can be useful when you need cash urgently without having to save pennies for years.  

An easier option as HELOCs are mostly cheaper compared to open mortgage rates, these are better short-term solutions for financing when you are able to repay the loan within a few months, one year or so.

HELOC is used for debt consolidation, higher education, home renovations, and other purposes. An important note here is you can apply for HELOC up to 65% of the value of your home.

 

How to get the best HELOC rates?

While you cannot get above 65% of your home’s value as HELOC, another fact is your mortgage loan balance and HELOC shouldn’t reach or exceed 80% of the value of your home. To get the best HELOC mortgage rates, you may consult the experts at RateGuru.

Use Mortgage Comparison Calculator to Get the Lowest Mortgage Rates

 

When it comes to mortgaging, we all look for the lowest rates. Are you also searching for the most competitive mortgage rates? It is now easier than ever, thanks to the availability and easy accessibility of highly reliable and reputed mortgage brokers and lenders in Canada. Before I tell you how you can get the best mortgage rates in Canada, it makes sense to understand how mortgages are funded in the nation. Quite notably, some of the biggest and most trusted banks provide the funding for most mortgages. There are several non-bank lenders too that can be relied upon for offering highly competitive rates. The presence of these lenders is in a way blessing for the customers (borrowers).

 

Which lender offers the cheapest mortgage rates? You may find it difficult to get an unbiased and honest answer to this question if you meet someone who has vested interest in mortgaging with a certain bank or lender. But if you use the mortgage comparison tool on a trusted site (such as the one at RateGuru), you can be sure that you get the lowest and most competitive mortgage rates for your purpose. Using the mortgage comparison calculator, you can see the difference between the mortgage rates of various providers. Comparison is always helpful in better and informed decision making.

 

What Are the Benefits of Mortgage Comparison?

Okay, let’s talk about furniture or other accessories in your house. What happens when you go out to shop for these items? Don’t you compare the items available in one store with those in the other? We all do that! Comparing things and even people for their behaviors. It’s quite natural. So, what is the harm in mortgage comparison?

 

With a free mortgage comparison calculator at RateGuru, you can compare mortgage options available to you and shop for the rates most suited for your purpose and need. Your decision to put your valuables as collateral needs to be wise and careful and for the decision to be right, you will need expert tools like the mortgage comparison calculator. Remember, the difference between the best and worst mortgage rates can sometimes be just a percentile point. So, examine, compare, and then choose.

 

Don’t trust the broker blindly. Carry out some research and mortgage comparison here and there. With many banks and credit unions extending amazingly discounted rates, you can expect mortgage rates much lower than your broker would boast of. Still not sure? Call us or mail us, we are here to assist!

Are You Planning On Renewing Your Mortgage Now?

 

Due to this sudden COVID-19 pandemic, a lot has changed in the way we do things including renewing a mortgage. It is all about making smart decisions with our hard-earned money and looking for products and strategies that guarantee us the best possible option. Since rates are continuously fluctuating during these times, it’s always best to shop around before arriving at a conclusion. There are a variety of resources today that can help you compare different mortgage renewal products and choose the one that best suits your financial lifestyle.

DO YOU PLAN TO GO FOR AN EARLY RENEWAL?

The fact is that there are plenty of mortgage payment deferral plans being offered to Canadian homeowners by the government to help postpone their payments for a selected period of time. A regular mortgage renewal does not usually involve a lot of paperwork but in case you opt for early renewal to take advantage of low mortgage rates being offered by lenders then your current employment situation is re-verified. That’s why it is best not to switch or quit your job during this time, especially if you are indulging in a mortgage renewal process.

SEARCHING FOR THE RIGHT LENDER

Today, there are a variety of ways to find the best refinancing rates and one needs to shop around to get the best possible deal. Sometimes you may also need to call a few lenders who may not have listed themselves but offer a lower rate of interest. It may not always necessary that you find the best mortgage renewal rate online whether it is fixed or variable – the best way is outright in-depth research before arriving to any conclusion.

WHAT ARE YOUR BEST RENEWAL OPTIONS?

Ideally, any lender would permit you to renew your mortgage without any prepayment charges, anywhere between 2 to 4 months in advance. In such a situation borrowers have the option to compare through multiple lending rates and bargain on something that suits them best. The good part about continuing with the same lender is that you avoid all the hassles related to paperwork during the mortgage renewal process. Other than that, there is always a good scope of the bargain to ensure that you pay lower than what you have paid so far.

BE A CONFIDENT HOMEOWNER IN 2020

If your mortgage renewal is around the corner in the year 2020, then my best piece of advice would be to submit your renewal application at the earliest. Since fixed rates are climbing at the moment, you would be able to make benefits from the rate cuts being proposed by the Canadian government that further guarantees lower fixed term rates.