When it comes to getting the right home equity line of credit, you need to know that interest rates are going to be low for a little bit. Right now interest rates are projected to stay in the 3% to 4% range for the next 2 to 3 years, which means that you are going to be able to save big on your next home equity line of credit. You’re going to need to make sure that this loan is on the up and up; it’s not uncommon for lenders to add in weird penalties, exorbitant fees, and other “extra” ways of making money off borrowers. Make sure you speak with one of our Toronto mortgage brokers before you get started.
What is a HELOC?
A HELOC, or home equity line of credit, allows you to tap into the equity in your home without selling it. Unlike a second mortgage or other kinds of home equity loan, you’ll be able to borrow as many times as you need – as long as you keep paying, of course. Most HELOCs have a term limit, just like every other mortgage you’ve had before. You’ll still have interest, monthly payments to make (only if you’ve already borrowed, if not you won’t have to worry about this) and the lender to deal with. It’s important to work with one of our Toronto mortgage brokers to make sure that you’re getting the best rate for you.
Why is now the right time to borrow?
Right now interest rates are at the lowest point they’ve been at in almost a century. You just won’t be able to find a better time to borrow them right now, it never hurts open the HELOC for a rainy day. If you don’t borrow, and you don’t pay. It never hurts to have that rainy day fund, and with many analysts saying that is around the corner it could be the best thing you ever did.
Always know the terms of your HELOC
Before you take out any kind of equity loan against your home you need to know the terms. Don’t just trust your lender or your mortgage broker! Do your research, understand what you’re getting into, and understand what’s expected of you as a borrower. The more you know the better off you’ll be.
Should you get a HELOC?
Everyone’s different, and we really can’t give you advice without speaking with you first. If you’d like to know more about home equity lines of credit, give us a call! We’ll be able to help you understand all of your options as a borrower, find a lender that matches your needs best, and make sure that you’re getting a great deal that fits your needs. Don’t get a raw deal just because you don’t know what you doing, let us help! Call today and see the HELOC is right for you – why spend more than you have to?