Learn to Make Your Property Work Financially for You

With the cost of housing rising so sharply in cities across North America, many people are making financial schemes to find a way to buy a home. If you’re fortunate enough to own a home already, you may be struggling to make mortgage payments — life was expensive before, and it’s only gotten worse after the Bank of Canada raised interest rates.

If you need to access cash now, there are ways that your home can help! Read on to learn how to do your homework for you.

HELOCs

A HELOC, or home equity line of credit, is a revolving type of secure loan that frees up major cash for homeowners on short notice. In a HELOC, a lender determines the maximum amount the borrower can dip into within a certain agreed-upon timeframe.

The borrower can use the funds as needed and repay them according to the terms of their arrangement. Using the home as collateral is usually an excellent way to get quick approval on significant chunks of money at a much lower interest rate than credit cards charge.

Second Mortgages

The phrase “second mortgage” can raise some eyebrows as people wrongly associate them with a financial emergency. You may be surprised to learn how popular second mortgages are, as mortgage refinancing rates are a common path people use to consolidate debts and improve their finances.

Connecting with the right second mortgage lender in Ontario helps people avoid bad credit and save over $1,000 every month, more than twelve grand a year! Those are the type of savings you can’t ignore.

Home Equity Loans

A home equity loan is like a HELOC, and except the borrower receives a lump sum payment in their account to repay rather than access to a loan, they can draw from when needed. Leveraging your home to secure this loan usually leads to a quick approval process and much lower interest rates than you’d get from credit card companies. While you’re free to use the money however you please, you need to be careful — failure to repay the loan can result in severe penalties, including losing your home. Most financial experts will insist that borrower has the freedom to do as they please while cautioning them to be mindful of the risks.

Traditionally, tapping into your home’s equity to pay for repairs or renovations makes sense because it raises the value of the asset you’re leveraging — your home. If you do this wisely and get some fortunate timing, you could make a net profit. In contrast, if you use the money to pay for a luxury vacation, you’ll have to pay for the vacation and the borrowing costs.

People everywhere are assessing their budgets to look for savings as living costs rise. Depending on their mortgage, homeowners may suddenly need to pay considerably larger sums each month as interest rates keep rising. Speak to a mortgage broker near you about the best way your property can boost your finances.