Equity Line of Credit

An Equity Line of Credit is a loan based on the equity of your home. Depending on the Lender, this product  may take various forms .  An Equity LOC loan often requires no qualifying as the loan is based strictly on the value of the home and amount of equity rather than on the borrowers credit worthiness.

Equity LOC loans are sometimes structured as second mortgages. This means the loan is registered on the title of the property in second position behind the existing first mortgage. There can be some advantages to borrowing money in this way; mainly the first mortgage can remain intact without incurring any penalties for breaking the existing term.

If an Equity LOC loan is structured as a second mortgage you may have the option at a rate of prime plus a percentage.

An Equity LOC loan can be used as you see fit whether it be renovation, investments, debt consolidations, etc.

If you are in Toronto and surrounding area, Mortgage Alliance can help - contact us.