Frequently Asked Questions
At Calgary Equity Loans, we understand that borrowing against your home’s equity is a significant financial decision. Whether you’re looking to consolidate debt, fund a renovation, or cover unexpected expenses, we’re here to help.
To make the process easier, we’ve compiled answers to the most common questions about home equity loans. From eligibility requirements to repayment terms, this FAQ page is designed to provide clear and straightforward information. If you don’t find what you’re looking for, our team is always available to assist you.
Explore the questions below to learn more about how a home equity loan can work for you.
1. What is a home equity loan?
A home equity loan allows you to borrow against the equity in your home, receiving a lump sum that is repaid with fixed monthly payments over a set term.
2. How does a home equity loan differ from a home equity line of credit (HELOC)?
A home equity loan provides a one-time lump sum with fixed interest rates and monthly payments, while a HELOC works like a credit card, allowing you to borrow as needed with a variable interest rate.
3. Can I get a home equity loan if I have an existing HELOC?
Yes, but your total home debt cannot exceed the lender’s equity limits.
4. Will I need an appraisal for a home equity loan?
Most lenders require a home appraisal to determine your home’s current market value.
5. What can I use a home equity loan for?
You can use it for various expenses, including home improvements, debt consolidation, education costs, medical bills, or any other significant financial needs.
6. How does a home equity loan affect my mortgage?
A home equity loan is separate from your primary mortgage and adds another monthly payment. It does not replace or change your original mortgage terms.
7. Is interest on a home equity loan tax-deductible?
Interest may be deductible if used for home improvements. Consult a tax professional for specific advice.
*8. Do I have to submit to a credit check to be approved?
You are not required to consent to a credit check, but it may impact the loan amount you qualify for. If you do consent, it will affect your credit score; however, it allows us to assess your financial situation more accurately, potentially increasing your borrowing limit.
9. What happens if my home value decreases?
If your home’s value drops, you could owe more than your home is worth, limiting refinancing or selling options.
Ready to take control of your finances with a home equity loan?
At Calgary Equity Loans, we make the process simple, fast, and hassle-free. Whether you need funds for home improvements, debt consolidation, or unexpected expenses, our team is here to help you access the equity in your home with flexible terms and competitive rates. Apply today and get the financial support you need!