By: Sarah Colucci
Senior Mortgage Agent, Lic. M14000929
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Have You Discovered The EquityLine Visa For Home? It's like a "homeline" for those that can't qualify with the bank.
The Equityline Visa is similar to a Home Equity Line Of Credit, but it is for those with bruised scores or who can’t qualify for further financing through their bank or existing lender.
As a property owner, there may be occasions you require cash to be accessible. Whether it be for a rainy day or to finance renovations - or even to pay personal tax arrears to the Government.
Even if you don't have a need for a home line of credit today, it's not a bad idea to get one. In the absolute worst case, it safeguards against title fraud by demolishing a crook’s ability to sell your house to a third party without your knowledge.
But sometimes, even after you get approved for a first mortgage with a great rate, and go through the process of demonstrating your credit worthiness and employment, things can change. Perhaps your full time, tenured position transformed into self-employment or now you are on contract work, or you could simply have run into financial issues which forced you to fall behind on payments and negatively affected your credit score - How will you be able to obtain a secured line of credit if you are no longer qualified with the banks?
Large banks and other prime financial institutions require very, very strong credit to qualify borrowers for secured home equity lines of credit (HELOC) products, which is due in part to the fact that home lines are "revolving" which means money is re-advanceable and which further increases risk of delinquency.
A conventional mortgage, on the other hand, is "closed” which means it gets paid down through monthly principal and interest installments and credit is no longer accessible.
So, if for whatever reason you can't qualify for a home line but you need one...
The Equityline Visa solves your problem!
An Equityline Visa can have a limit of up to $250,000 and as little as $25,000 and can be registered in either first or second position against your property, which means your first mortgage does not have to be altered or renegotiated, which also means you won’t incur a pre-payment penalty for breaking your mortgage early.
What is the minimum required credit score for the Equityline Visa?
The beauty of the secured Visa is there is no minimum beacon or credit score required to qualify. For example, if you needed $50,000 for renovations or to pay back-taxes to the CRA, and your credit score was 550, it would still qualify under this program. Major banks almost universally require a person to have a credit score of over 680 to qualify for a secured home equity line of credit.
What are the benefits?
The benefits of this product are there are absolutely no annual fees, you receive 1% cashback on all of your purchases, and if you have bruised credit, it creates a remarkable opportunity to build your credit back up again in a very short amount of time.
Before you renegotiate your entire mortgage for a higher rate just to take out a small amount of equity or consult a private lender, make sure you ask me about the Equityline Visa!
Let's get started on the Equityline Visa today!
Sarah A. Colucci, Mortgage Agent Lic. M14000929
Mortgage Edge, Broker 10680
Direct: (647) 773-4849