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Equity Take-Out
An equity take-out mortgage can take many forms and has many uses. Given that you have available equity in your home you can easily get approved for an equity take-out mortgage. Many Canadian homeowners borrow from their home equity for a variety of reasons. It can be a second mortgage against your home or a home equity line of credit (HELOC).
Getting approved for an equity take-out is a simple process, contact us or fill out one of our online forms and let an experienced professional do the mortgage and rate shopping for you.
Along with providing you with the best mortgage and rate that you can qualify for, we also advise on your mortgage decision and provide a service of continued advice throughout the repayment of your mortgage. At Mortgage for Less it is our goal that you spend less to get the financing that you need.
Equity Take-Out types and uses
An equity take-out mortgage allows you to access your home equity for a variety of reasons and there are many products and types that can suit your financial needs and goals. Take a minute to review a variety of forms, reasons and uses of a equity take-out mortgage.
You need financing for an important step in your life
Whether it be a new family member on the way, a business investment, home renovation or debt consolidation an equity take-out mortgage can help finance a future goal or get you through a difficult time. As an experienced mortgage brokerage we have helped many Canadians get the right mortgage for their financing needs.
You need a property down payment
Whether you're buying a new home, an investment property or a vacation getaway, you can borrow your down payment from your available home equity. Depending on how much your new property costs and how much available equity you have with your current home you can potentially borrow a down payment that'll significantly reduce the amount that you'll have to borrow for your mortgage on your second home, rental property or lake-side cottage.
Refinancing for unexpected or planned costs
Many Canadians have used the equity in their homes when faced with a large expense that their savings can’t quite cover. You may have to cover your child’s university costs or need the money for a home renovation project.
Home Equity Line of Credit (HELOC)
A HELOC is a form of equity take-out but rather than being a lump sum borrowed by a homeowner, it is a secured line of credit against a portion of the available home equity.
Simply the more home equity that you have in your home the more money that you'll be able to borrow through your equity line of credit. The most essential difference that a home equity line of credit offers in comparision to conventional mortgages is that the line of credit is a secured amount that instead of being borrowed and financed is an available fund of which a borrower can withdraw money from at any time.
No payments are required for a home equity line of credit, but the borrowed amount of equity will accumulate interest. It's also important to note that a HELOC is a demand loan, meaning the lender can demand repayment at any time, but probably won't.
Second Mortgage Financing
A second mortgage is a common and popular equity take-out mortgage. Depending on how much available home equity you have, the amount you want to borrow through your second mortgage and considering you credit score the rate of your second mortgage will be determined. In any case the rate you qualify for on a second mortgage will carry a higher interest rate than the one you obtained for your first mortgage.
Get a Home Renovation Loan with an Equity Take-Out
An equity take-out mortgage can be used for home renovations.
A lender will be more than willing to fund your ambition to improve your home. A home is security for your loan and given that you plan to add value to that home is an added security for a loan in the case of default.
Though a lender will not likely fund or approve a renovation that involves extreme changes or additions to a home.
A big project like adding another level to your home is a risky move for a lender, as such a project given unfinished or complications could harm the value of the home that a lender is using as security for your debt.
Consolidate your debt with an Equity Take-Out Mortgage
Having multiple debts can be a burden, an equity take-out mortgage can be a good way to consolidate that debt and simplify your life. Rolling your debts and loans into your mortgage can be financially strategic and beneficial.
Consolidating your debt is simply repaying debts with mortgage proceeds. Consolidation is when a debt is paid by another debt. The advantage to consolidation is that it brings a gross owed amount under one repayment and a single lower interest rate.
An equity take-out simply allows you to strategically target high interest debt with a consolidating payment of the debt and a replacement mortgage that consolidates debts under one repayment and interest rate.
Required documents for an Equity Take-Out
Identification
Why is it required?
Important things to note
Income Verification
Why is it required?
Important things to note
Current Mortgage Statement
Why is it required?
Important things to note
Property Appraisal
Why is it required?
Important things to note
Property Tax/Bill Statement
Why is it required?
Important things to note
Heating Bill and/or Condo Fees
Why is it required?
Important things to note
Void Cheque
Why is it required?
Important things to note
Need extra funds? Refinance your mortgage.
An equity take-out is not the only way to access your home equity and more mortgage financing. Have you considered a refinance mortgage?
Have a question?
Feel free to send us an email with any questions you may have about the required documents for an equity take-out mortgage.
We'd be happy to help!
How to get started with an Equity Take-Out
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Determine what you can afford
We have a few excellent options to determine what you can afford to borrow. We offer an easy to use Mortgage Qualifier Calculator. Simply input the required information and let our calculator give you an idea of how much you can afford to borrow.
If you want to get the most accurate idea of how much you can afford to borrow, contact us or fill out our online mortgage assessment form.
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If you don't know what you want or need in a mortgage, we can assess your finances and in consideration of your financial needs and goals, we'll provide the best mortgage and rate for you.
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We can be contacted by phone, email or directly through our website. We do consultations through email, phone and meetings. To begin a consultation fill out a form pertaining to your mortgage needs.
We've been helping Canadians obtain financing at the best terms and rate for 30 years and we'd be happy to help you get the best mortgage.
Fill out an online form
We have a variety of forms and applications at your disposal. We do everything from mortgage applications to mortgage assessments to helping to improve credit ratings.
How getting an Equity Take-Out works
Fill out our online mortgage application
We assess your financial information
We chat about your mortgage financing options
We collect your required documents
We shop for your best mortgage and rate
We submit your application to a lender
You get approved for mortgage financing
We continue to advise and standby to guide
Determine your home equity
with a free Ontario property assessment
A summary of our mortgage service
We navigate the mortgage market for you. As professionals we shop for you and in doing so we provide proficient service and advice.
Nick and his staff were very efficient and helpful. Nick in my opinion went above and beyond what was required in arranging my new mortgage. This has been my experience over the past 25 years when dealing with Mortgage for Less and Nick specifically.
Steven Hensman
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Nick Mitskopoulos was professional, trustworthy, efficient and proactive. His expertise as a broker was evident from the moment we met him. We had encountered 2 other brokers before but we decided to go with Nick because of his professionalism and sense of ethics. He was also patient and answered our numerous questions. We definitely recommend him as a mortgage broker. Keep up the good work Nick!
Sylvie Leung
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At no cost to you, we work on your behalf with your best interests in mind, until the mortgage transaction is closed and you are funded.
We asses your situation, advise on a mortgage product, find your best rate and provide you with options to customize your mortgage.
Nick was great to deal with. Professional, knowledgeable, polite and quick to answer any questions we had. Throughout the process from mortgage pre approval all the way through to closing day he stayed in touch making sure we had all the information necessary.
Would highly recommend Nick.
David Lowcock
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I have used Mortage For Less for all my mortgages since purchasing my first home nearly 15 years ago. From our first experience Nick has always been amazing at providing advice and negotiating great deals, and we have been a loyal customers ever since. Nick also jumped in quickly to help us work out a line of credit through our mortgage when we inquired a few years ago, and he provides interesting updates on the market. I plan on sticking with Nick for as long as I own a home.
Rob Taniwa
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We consider your financial needs and goals to provide a proficient service of strategic mortgage customization.
We provide advice before and after a mortgage. We're dedicated to answering and advising on all your mortgage inquiries.
What a pleasure it is to do business with Nick. I have used Nick as my mortgage broker several times now and wouldn't think of using anyone else. He is knowledgeable, professional and always timely on any questions or inquires I have. He makes you feel like you are a special customer through the entire process. Nick thanks again for all you expertise and making this a smooth transaction.
Much appreciated !
Danny Phillips
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It's always been a pleasure to work with you. Everything was made very easy for us even though you are in a different province. I believe I always got a great rate without me having to negotiate with several different banks. All the work was done for me. Thank you.
Mary Tiberio
Google Review
We provide a continued service of advice to strategically save tens of thousands over the life of a mortgage.
Utilize home equity with a take-out mortgage
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