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. 

 

  

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.

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.

 

 

A fixed-rate home equity loan and a home equity line of credit 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, contact Canadalend and a mortgage specialist will help you book an appointment.