So you need a little extra cash and you’re wondering how you can get it. A line of credit is a great way to obtain the extra funds you need, but you need to know what type of line of credit would be best for you; and then you need to know where to go to get them.
The most common type of unsecured line of credit is a credit card. With this type of loan you needn’t put up any collateral in order to obtain the loan. However in exchange for not having collateral, you’ll be charged exorbitant amount of interest – often as much as 21 per cent. For homeowners, a secured line of credit makes much more sense, as these lines of credit only charge about 3- 5 per cent interest, currently.
A secured line of credit such as a home equity line of credit will let you borrow up to 80 per cent of the equity you currently hold in your home, and they are the easiest to obtain. Because homeowners only need to have equity, and their credit record and payment history aren’t usually taken into consideration, HELOCs are generally the preferred choice for homeowners. But, where can you get a secured line of credit in Ontario?
If you choose, you can stay with your current lender to get your HELOC, but you don’t have to. Because this type of loan is a second mortgage, you can choose a different lender than the one that currently holds your first. It’s all a matter of comparing HELOC packages and finding the one that’s best for you. For many homeowners, this could mean shopping around on their own from lender to lender, trying to find the best rates and the best deals. While this can be a tedious and time-consuming way to get the money you need, there is a better way.
That is to speak to an Ontario mortgage broker that can help. Brokers have a vast network of lenders dealing with both first and second mortgages, and they’ll be able to quickly compare them across the board to find out which one would be the best fit for you and your situation.
There are lost of lenders in Ontario that can provide you with a secured line of credit. However, save yourself the time and trouble and let a mortgage broker find the one that’s best for you. It’s the only way to get the best deal on your secured line of credit!
