Ajax homeowners may not be aware of the equity value of their home or how they
can make this equity work to their advantage. There are many financial demands
that can arise out of the blue, and having a home equity loan available to help
support these demands can help to prevent debt accumulation. Second mortgages
are a way homeowners can use the equity in their home and make it work to their
financial advantage. Typically, Canadians (including those living in Ajax)
borrow money from a financial institution or a private lender to finance their
Homeowners generally have one mortgage they are paying into, having
made arrangements to repay the lender over a length of time (or an amortization
period). A second mortgage or home equity loan will typically offer a homeowner
the chance to avoid accruing substantial debt should a financial emergency
Home equity, simply put, is the value of your home minus all
of the debts you have secured against your home. This basic equation can help
you assess the equity you have available in your own home. These types of loans
come with a lower rate of interest compared to most credit cards – offering a
more manageable solution to emergencies such as car and home repair or medical
expenses. This also helps borrowers control their budgeting and spending.
Equity loans are also used to help control and consolidate debt. By cutting
down how much you are paying each month, and with a lower rate of interest,
homeowners can take control of their financial obligations in order to protect
their financial well-being.
Making Home Equity
Loans Work for You
There are many ways borrowers can use a home equity loan to their advantage:
Emergency Expenses: A top reason for using a home equity loan is in order to get cash needed in a hurry.
Losing a job, emergency home repairs, or medical expenses can have a
detrimental effect on financial security. Using a home equity loan will empower
you to pay off these expenses and avoid accumulating unmanageable debt.
Education Costs: Sending
a child through post-secondary education is costly, but essential. Many parents
turn to a home equity loan to help finance tuition costs.
Projects: Reinvesting in a home for resale value is a way Ajax homeowners
use home equity loans to their advantage. These large projects are costly but
add a huge benefit. While paying back a home equity loan, the resale value may increase,
making it more profitable should you decide to sell your home.
with a home equity loan is beneficial because interest rates on the
loan are usually less than the rates attached to individual accounts owing. It
is easier to make one payment instead of multiple payments with higher interest
per month. Using home equity is a way to pay off this debt and get ahead!
Partner with a
Working with a lending expert that has years of experience is the first step
you can take to making home equity work for you. Understanding the market and
community you live in will also help as they can answer questions specific to
your needs. Sifting through different options that are available through
different lenders and financial institutions can be daunting. This partnership
with a lending expert is most certainly guaranteed to offer the best outcome