Canadian homeowners have plenty of ways to access home equity although it can be tricky to choose which option is the best for their specific situation. It is not a secret that some individuals may face more difficulties or experience more limitations such as in the case of freelancers and other self-employed individuals. In general, people with non-regular income sources will have more difficulty securing mortgages and other loans.
Challenging Choices for Borrowers
The Canadian Government introduced the mortgage ‘stress test’ just a year ago and Canadians are having a more challenging time borrowing money with good interest rates since it was implemented. The mortgage stress test made things more favourable for lenders by increasing profits and decreasing risks but since borrowers have been having a harder time, they’ve been looking at more financial options to help them manage existing debt. This is a huge factor as to why the different types of home equity loans are becoming more popular although some people have voiced that that the many ways to access home equity is still a bit confusing for them and they aren’t sure which to apply for. The different home equity loans do have their pros and cons and what may work for one family may create more problems for another. This is why it is important to fully assess your specific situation with Canadian mortgage professionals before deciding which option to apply for to ensure that your financial goals will be met and so that you can avoid possible pitfalls.
A mortgage professional is a person who is abreast with the best and latest practices when it comes to mortgages and using your home equity. They can explain things to you in a manner that you will understand better. They will work with you to guide in making ethical financial decisions as a homeowner so that you can achieve your long-term financial goals faster and with more efficiency. Be prepared to answer a lot of questions because your answers to their questions is their way of assessing your financial needs for them to pinpoint the best options for you. Typical questions may be about your time frame for borrowing, how much you want to borrow, what are the terms for your existing loans or mortgage, and qualification criteria for loans and mortgages.
Refinance Your Mortgage or Get a Home Equity Loan?
Your truthful answer to the possible questions will determine if your situation will benefit more from a home equity loan or from a mortgage refinance. Note that each detail you provide counts in creating a solid approach that helps you get the cash you need now using a way that you will be capable of paying off later. This way, you can get out of debt faster.
Do you need a mortgage professional to help you decide between a home equity loan and a mortgage refinance? Talk to us at Mortgage Central Canada and we will answer the questions you have to empower you with the information you need. Discuss your borrowing options with us today!