Home Equity line of credit Oshawa

Benefits of a Home Equity Line of Credit

Before we get into the benefits of a Home Equity Line of Credit (HELOC), let us understand what it is. A HELOC is the perfect solution for homeowners looking to access some of their property’s equity. Through a HELOC, the homeowner can access up to 85% of the property’s equity irrespective of their credit state. At times referred to as a second mortgage, the term of a HELOC is shorter. The funds can be utilized for various reasons such as debt consolidation, paying off your student’s loans, and other significant expenses. Contact 1ONEFUND Financial today for further details. We serve customers all over Oshawa.

Tips before getting a home equity line of credit:

• Identify whether you need extra credit to achieve your financial goals.
• Consider things like interest rates, terms and conditions, flexibility when you decide to get a HELOC.
• Make a clear, detailed plan of how you’ll utilize the money you borrow.
• Draft a realistic budget for your projects.
• Identify the credit limit you need.
• Negotiate with different lenders.
• Design a repayment schedule and adhere to it.

Major Benefits of a HELOC

A quick and straightforward approval process

The process of approval for a Home Equity Line of Credit is quick and straightforward. In most cases, it can as take as little as 48 hours to get approved and funded. This type of credit is usually for one year, depending on how you access the funds.

Funded by private lenders

Private lenders primarily fund a Home Equity Line of Credit. The borrower’s credit score, including their income, does not play a vital role in determining if they qualify for the line of credit or not. It is ideal if the borrow has at least the minimum credit score and qualifying debt-to-income ratios, as getting approved would be much quicker and easier.

Save a lot of money

One of the significant benefits of getting a Home Equity Line of Credit is saving thousands of dollars if you consolidate your debts with significantly higher fixed interest rates. Home improvement store credit cards, department store cards, credit cards tend to have high interest rates that could put a strain on you financially. With debt consolidation, it reduces your financial burden drastically, ensuring you can make small convenient payments month on month.

Lower interest rates

You can use the equity of your home to pay off your outstanding debts and expenses with lower interest rates. A Home Equity Line of Credit has lower interest rates when compared to a credit card. With a HELOC, you will be saving close to 6 – 7% or much more.

Don’t be burdened by bad credit

There are various reasons why an individual may have poor credit, but that should not restrict you from having access to cash when you need it the most. As long you have equity in your property, a bad credit score won’t stop you from getting a line of credit. Even if you declared yourself bankrupt previously, you still qualify! Give our team a call at 1-833-201-3863 to schedule a consultation or know more about Oshawa’s Home Equity Line of Credit.