Home Equity Loans

Why Choose Us:

Unlock Equity Value in Your Home Quickly

Transparent and Competitive Loan Terms

We Consider any Tax, Credit, or Employment Situation

Easy Application Online or By Phone

Contact us when you are ready to reorganize your home finance.
CALL US AT:
416-800-8808

Mortgage Central is Toronto’s Leading Home Equity Loan Provider

Even with the best-laid plans, some families feel the squeeze of unexpected expenses from time to time: major home renovations, automobile issues, financing a college education. As a homeowner, the value of your property can be leveraged to provide low-risk financial flexibility. With the access to the largest pool of home equity loan leaders in Canada, you can be sure Mortgage Central will help you get the financing you need. We give families with no or poor credit the tools to live the good life today.

What is a home equity loan?

Before explaining what a home equity loan entails, let’s define equity. Home equity is the difference between a property’s fair market value and the total of any liens on the property (such as a mortgage). A home equity loan, sometimes referred to as a mortgage equity loan, uses the equity of your home as collateral. As with your original mortgage, it is subject to an interest rate and various fees.

How does a home equity loan work?

As you pay down your mortgage, your home equity increases; over time the valuation of your property may rise, which also increases equity. To calculate home equity, a lender will assign an appraiser to evaluate the property. Appraisal takes into account the value of other homes in your area, the condition and maintenance of the physical structures and more. Home equity can be built by diligently paying down your mortgage and making improvements to your property.

What is the difference between a home equity loan and a home equity line of credit?

A home equity loan and a home equity line of credit (or HELOC) both utilize home equity as collateral, but differ in terms of how the loan is dispersed. Home equity loans are a one-time lump sum payment, usually with a fixed interest rate. A HELOC on the other hand is a form of revolving credit (a la a credit card) in which amounts can be regularly withdrawn within the limits set by the lender. These amounts can be as much or little as the homeowner needs, and the interest rate tends to be variable.

Can you get a home equity loan with bad credit?

Thanks to booming property values in the Greater Toronto Area, taking out loans on home equity is an increasingly popular option. Unfortunately, those with poor credit histories often find themselves on the outside looking in. Mortgage Central approves financially solvent clients with bad or no credit. We believe there are many homeowners whose challenging circumstances or lack of understanding of the often complex nature of credit earlier in life has painted an inaccurate picture of the fiscally responsible people they have become. We work closely with our clients to reach an agreement that fits their needs.

What are home equity loans used for?

Home equity loans have many uses. These include: 

  • Debt Consolidation: Having multiple ongoing loans at varying interest rates can unnecessarily complicate your financial management. Many people use their home equity to pay off these extraneous loans and thereby transfer the balance of their debt load to a single stream with a favourable interest rate.

  • Mortgage Refinancing: In a similar vein, home equity can be used to improve the terms of one’s mortgage by paying off the original mortgage with a lump sum. This can free up cashflow, reduce monthly payment amounts and/or reduce the term of your mortgage.

  • Acquiring Property: Using your existing home’s equity to buy another home can be a smart decision when the opportunity arises to increase your property investment portfolio. For example, you might buy a second property and rent it out, creating a powerful new income source. 

How can you get a home equity loan with Mortgage Central?

Mortgage Central is always available to work with our clients in Toronto and GTA on achieving greater financial freedom. The first step is to reach out to us online or by phone to arrange a meeting with one of our experts. Use the form below to give us a little information about yourself and get pre-approved for a loan today. We’ll help you determine how much equity is in your home, and how you can get the most out of what your hard work has built.

We use our connections and expertise to match our customers with tailormade lending solutions, seeking out the perfect financial product for them, no matter what their credit history or rating.
If you would like to discuss your options to acquiring a second mortgage in Toronto, CALL US AT 416-800-8808. We look forward to helping you!