How does a Home Equity Loan Work?

How does a Home Equity Loan Work?
With recent disasters in Calgary, the East Kootenays of BC, Toronto and other parts of the country, many home owners found themselves in a tight financial situation after discovering that their insurance wouldn’t cover the damage to their homes.  What can you do in a situation like this?

It became worse after the disaster, as many homeowners learned that their homes would no longer be insured because they were now living in a flood zone.  So when insurance no longer covers the possibility of damage to your most important investment, you need to set up your own emergency funds to cover the repairs.  Yet with money so tight these days, who has the extra cash to do this?


Home Equity Loan
If you have been paying your mortgage and have lived in your home for a while, and if the value of real estate in your neighbourhood has increased, the equity in your home has gone up.  Since you’ve worked so hard to pay your mortgage and built up that equity in your home, the equity there should also work for you! Accessing the equity in your home may be one of the most cost-effective ways to lower your borrowing costs, or to have money when you need it most.

A home equity line of credit, or home equity loan can work for you.  The nice thing about this type of loan is that you can borrow it whenever you want, and pay it back again.  This is perfect for emergencies since you don’t have to use it unless you need it.  If you wait until the emergency has happened, it may take time to get the cash you need when you need it.  Instead, it is much more effective to set up a home equity loan or a home equity line of credit so the money is available when you need it – whether it is for home repairs, renovations, a much-needed vacation, a new car, tuition for your kids or other surprises in life.


Home Equity Financing
With a home equity loan, it is possible for you to get better rates and more flexible payback options since the money you are borrowing is secured by your house.  This provides assurance to the lender that money will be paid back, since you already have the collateral built up in the equity of your home.

The amount of financing available is determined on what is known as lendable equity, which is based the amount of equity built up in your home, how much you put down when you bought it, the amount of your mortgage, stated income and other factors.  Once they calculate a number, institutions such as One Stop Mortgage Corp are then able to provide you with a loan or line of credit based on the value of the equity in your home.

Peace of Mind
We’ve all been there.  Something happens, we need cash right away, but have to wait for loans to process, pay high interest rates, or have terrible restrictions on paying back the loan.  Since a home equity loan or a home equity line of credit is based on the value of your home, it can be set up today and be ready for you when you need it.  Disasters happen at any time – the climate has become so severe and storms are getting stronger – you need to be prepared.

With a home equity loan from One Stop Mortgage Corp, you get peace of mind in knowing that the money is there when you need it.  So many Canadians faced hardship because of weather this year – particularly those in Calgary.  We have been there to help many people access the equity in their homes to pay for repairs.  Who can count on insurance these days, when they don’t cover damage to your home from floods and other natural disasters?  It’s far better to be prepared so you don’t have to wait for money to get your life back on track.


Home Equity Loan with Bad Credit
Even if you have bad credit we can help.  Mike from Calgary came to us to get a home equity loan to repair his basement that was destroyed by the flood.  Not only were all the contents of the basement destroyed, the cleanup and repairs were going to be expensive.  Mike’s credit was stretched since he had to borrow money to set up his new business, and the banks wouldn’t help because of what they saw as poor credit.

The One Stop Mortgage team reached out, used his stated income as a base, set up a plan to repair his credit, and were able to get him the money he needed to repair his home and bring some stability back to his family.  Too often you can’t count on the big insurance and banking institutions to help you, but there are places where you will find a helping hand.


Home Equity Loan in Alberta and BC
Even if the bank said “no” we can help.  Contact the One Stop Mortgage team of home equity loan specialists today and set up your own insurance policy with a home equity line of credit or home equity loan.  We can help you get access to the cash you need if you are paying a mortgage, own your own home, and have some equity built up in your house.  Don’t wait for the bank or insurance company to say “no” – contact the One Stop Mortgage team today and find out how we can help!

Simply fill in our 2 minute application form here for Alberta or BC or contact us directly and we can help.

Contact One Stop Mortgage Corp today and get cash when you need it most.  Even if you are self-employed, or have a poor credit score, they can help you. Since 1994 we have helped people get the best mortgages and home equity loans to fit their lives. Contact us today and find out how we can help!

A simple phone call to 1-877-874-8988 or 604-874-8988 or an email to can help you find the best loan product to fit your needs, reduce the interest payments and improve your credit rating and credit score.

Even if the bank turns you down, or your credit-rating is not accepted elsewhere, we can help.

Phone:  604 874 8988 or call toll free  1 877 874 8988
Fax: 604.874.9109

Or simply fill out the contact form here