Frequently Asked Questions About Equity Loans
Equity loans are beneficial as their interest rates can be significantly lower than other kinds of loans. It makes them an ideal source of credit when you are in need of money. However, ensuring you obtain this finance when you need it most means you should understand the details behind it. Unfortunately, when it comes to mortgage services, there are a ton of questions clients have but often find answers difficult to come by.
To help you secure the right funding to meet your personal needs, Capri Mortgage Corporation wants to arm you with the most accurate information available and to do this, we’ve answered some of the most frequently asked questions about equity loans.
1. How much equity do I require?
It will depend on the location and property type. You will need more than 20% in most situations.
2. What interest rate will I qualify for?
Every application and property is evaluated individually, and the interest rate will be based on the amount of risk involved. Rates will be higher than bank rates for “A” borrowers.
3. How good does my credit have to be?
In most cases, your credit will not be considered.
4. What if I don’t have any income?
Every deal is evaluated on its own merits and circumstances. A reasonable expectation for the ability to pay is considered.
5. How much income do I need to qualify?
You may not need any. It will depend on the circumstances and the exit strategy providing you have enough equity.
6. What if I have gone bankrupt before?
As long as you have enough equity and the deal makes sense, you can get a loan, (or you now have enough income with equity).
7. How much will it cost to get a loan?
There will be a fee charged by the broker which will vary depending on a number of factors. Do note that some brokers will be more expensive than others.
8. What happens at the end of the term of the mortgage if I still don't qualify for bank financing?
Every Private Lender is different. Be sure you understand what will happen at the end of the term before you accept the mortgage. Some lenders charge hefty fees to renew. Please consult a trustworthy source before you agree to anything.
If you have any more questions about equity loans, get in touch with the experts at Capri Mortgage Corporation. As the best private equity lender in British Columbia, we handle all mortgage financing and can accommodate most proposals. We specialize in equity lending with very competitive terms and guarantee prompt, efficient, professional services. That's a promise!