Home Equity Loans
Sherwood Park Mortgage Brokers
Our mortgage brokers are trained and licensed to provide excellent customer service and meet your needs whatever they may be. At Magnum, we realize the importance of obtaining customer satisfaction. The better your experience is with us the more likely we will be able to continue to do business together in the future.
Let’s start by defining what Home Equity is!
Home Equity is the difference between the Value of your home and any outstanding Loans or Mortgages borrowed against your home. Here’s an example of home equity: If you own a home worth $350,000 and you owe $150,000 on your mortgage, you have $200,000 in Home Equity.
There are typically 2 ways that you can increase your home equity:
1) By paying down your mortgage, or,
2) If your home value organically appreciates.
A Home Equity Loan is when you access your home equity by borrowing money, which is secured against your home. A Home Equity Loan can be done through the refinance of your mortgage or by getting a second mortgage. Typically, homeowners can access up to 80% of their home value when completing a Home Equity Loan. Borrowers can utilize their Equity Takeout funds for many different purposes such as Consolidation of Debts, Home renovations, for Investment purposes, to purchase a vehicle or asset, or even to use as a down payment for their next home purchase.
Here’s an example of when we were able to help on a Home Equity Loan with a Magnum Mortgage Corp. Private Mortgage:
The story: The self-employed borrower, was negatively impacted due to work slowdown over the COVID pandemic, understandably, their debt level had increased significantly and resulted in further financial stress. Though they were diligent in maintaining all of their individual payments, to all of the individual creditors, it was getting tougher and tougher to manage. When their employment and income eventually stabilized, they had approached their bank to see if a Home Equity Loan was possible to help consolidate their debts & payout their CRA tax arrears. Their bank was unable to help with a Home Equity Loan, due to their CRA Tax arrears, as well, their credit score had fallen below their bank’s minimum guideline, and they were unable to qualify on a traditional loan application. Though their payments were always made on time & though they had a lot of Equity in their home, because of the high utilization of debt on their Credit Cards & Lines of Credit, their credit score had decreased significantly over the last couple years.
How was Magnum able to help? These clients were able to connect with us, and through our commonsense lending approach, we were able to help the clients with a second mortgage with Magnum Mortgage Corp., leaving their 1st Mortgage with their Traditional Bank intact (to ensure that they didn’t lose out on their great rate & to avoid having to pay a costly Prepayment Penalty; this allowed the clients access to their home equity, to consolidate their debts and payoff their CRA Taxes owing to alleviate their debt & tax repayment stress. At the end of their term, the borrowers will be in a better position to qualify on a traditional mortgage application with their Bank or Monoline Mortgage Lender, as they will no longer have the CRA taxes owing & a high utilization of debt keeping their credit score down.
These borrowers were able to benefit from:
- Consolidation of their debts & CRA Taxes owing;
- Their credit scores experienced a boost, as their debts were paid out;
- Interest Savings, they decreased their overall interest paid (as they were paying over 18%+ interest on their credit cards);
- They were able to sleep at night, knowing that their CRA taxes & their unsecured debts with several creditors were paid, and they only had 1 payment that needed to be made every month
Give us a call today to discuss a Home Equity Loan or a refinance of your mortgage! We can be reached at 780-467-6393 or by email at lending@magnumcorp.ca
"Our Interest is Your Wealth" ™
