Line Of Credit
Homeowners may find using the equity they have built up to be one of the most cost-effective ways in which they can lower their borrowing costs. This is because home equity lines often provide them with a lower interest rate than other types of loans, with access to credit for unforeseen expenditures or home renovations. You can use it as you wish.
This type of financing is an excellent option for people who need money to renovate their homes or consolidate debts. You can borrow up to 80% of the estimated value of your property.
Benefits Of A Home Equity Line Of Credit
A home equity line of credit can allow you to access up to 80% of the value of your home. The balance of your due mortgage line + your HELOC, cannot equal more than 80% of your home’s value.
With a home equity line of credit (HELOC), your funds will be available through a revolving line of credit. These are a great way to get access to the value in your home without advancing all cash. You can borrow as much or as little of the HELOC as you need, and you only pay interest on the withdrawn amount.
You will be liable for monthly payments if you use an amount of your home equity line of credit. Your contractual payment will be interest only; however, there are no penalties.
Equity lines of credit can come in handy when you need an extra financial boost. Speak with one of our experts about what type would work best for you!
REQUIRED DOCUMENTS FOR YOUR MORTGAGE
Current employment status and income amount as:
- Copy of current payroll.
- Proof of current electronic deposited pay.
- Associated Notice of Assessment (NOA) & T1 General.
- Additional income sources (if any).
- Prior employment status (if required).
- A List of your current assets and obligations.
- Bank account alongside transit number for payments.
- CIBC Pre-approved Mortgage Certificate (if valid).
- Statement of investments from within the latest 90 days or savings.
- Withdrawing an amount from RRSP through Homebuyer’s Plan (if valid).
- Gift letter.
- Copy of the sale agreement of a sold current asset.
- A copy of the real estate listing.
- A copy of the sale agreement and accepted purchase.
- Full address of the property (legal description and postal code).
- Tax estimates of the property, heating costs, and condo fees (commonly, you may find these details on the real estate listing).
- Well and septic certificate regarding rural properties.
- Lawyer’s full details (name – address – telephone and fax number – postal code).
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