Accessing an Equity Appraisal with Canadalend
As a homeowner, you can
borrow against the equity in your home with a Canadalend loan. Equity in your home is the difference between the current appraised value of the home and the
amount still owed on the first mortgage. With an equity appraisal from
Canadalend, you can find out how much you can borrow against the equity in your
home. Equity in your home is a powerful tool, and it should be available to you if needed.
What Is an Equity Appraisal?
Before a lender will issue any sort of home equity product
, the lender will request an equity appraisal. An appraisal delivers an
estimate of the fair market value of the property. Equity in your
home is calculated by subtracting how much you owe on a mortgage from the
home’s current market value. It is necessary to have
the appraisal value of a property so that increases or decreases in property
value can be calculated accurately. The lender typically requires this
appraisal before loan approval to ensure that the loan amount is not more than
the equity value in the home.
Canadalend works with many different lenders, including:
- all major banks
- all major mortgaging institutions
- unlimited private funds
An appraisal is performed by a licensed appraiser who is
trained to render property values expertly. The buyer does not
get to choose the appraiser, because the lender wants an objective evaluation of
the property's worth. However, by legal practice, the lender cannot push the appraiser
to deliver a preferred property value. Mortgage specialists at
Canadalend provide their best effort to ensure that clientele always receive
fair financial solutions.
The Difference between a Home Equity
Fixed-Rate Loan and a Home Equity Line of Credit?
A fixed-rate home equity loan and a home equity line of
are often discussed together, but they are two unique products. Both
types of loans have a set term, but are structured differently:
A home equity fixed-rate
loan will present the loanee with the money from the loan in one lump sum. It is similar
to any other term loan where you have monthly payments for the life of the
loan. Since it is available with a fixed interest rate, you will avoid increases. A fixed-rate loan is typically available with lower
interest rates than credit cards. With this, you are able to consolidate multiple
debts into one single, low interest payment.
A home equity line of credit 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. Since you are able to borrow the money as required, you will avoid
taking on a large debt all at once. If you have the discipline not to use it
unnecessarily, a home equity line of credit can be an ideal emergency fund.
Mortgage specialists at Canadalend will evaluate your
current financial situation and decide which equity loan products are best for
your financial and lifestyle needs. If you are interested in an equity appraisal
from Canadalend, or even if you just want to know what your options are,
mortgage specialist will help you book an appointment.