A home equity lines of credit (HELOC) is an option available to home owners that allows them to leverage the equity they have built up in their homes. When you apply for this type of loan, you can choose to receive a lump sum of cash to use as you please (Full amount or partial), or borrow the sum over time to use as you please.(more…)
When you obtain a mortgage the lender may suggest that you take out Mortgage Insurance (also known as Creditor Life Insurance). Many people chose not to take it, but they also don’t have Life Insurance, and this is problematic as you should definitely have one or the other! So let me explain what they are so you can make the right decision.(more…)
Most mortgage borrowers don’t know what a collateral mortgage is. When a lender registers your mortgage they can either register it as a “Collateral charge” or a “Conventional Mortgage Charge”. There are several lender’s who have done Collateral only mortgages for the last 8+ years so you may very well be in a collateral mortgage without knowing it. So what does this mean to you?
1.something pledged as security for repayment of a loan, to be forfeited in the event of a default.
synonyms: security, surety, guarantee, guaranty, insurance, indemnity, indemnification; backing
“she put up her house as collateral for the loan”
The definition of collateral is self explanatory, however the way it works in mortgage lending is a more of a “Readvanceable Loan”. Let me explain the difference between Collateral and Conventional.
There are many type’s of mortgages available in the Canada’s Lending Market, which makes being a home buyer an overwhelming process. That is why using a Mortgage Agent is always advised as we will take the time to explain your options and help find you the right mortgage product for your current and future needs. At AKAL Mortgages Inc., we have made a list that will hopefully help you understand what is right for you. This list comprises some of the most common types of mortgages available in Halton, Kitchener, Waterloo, Cambridge, Guelph and surrounding area’s. (more…)