Understanding Equity-Based Lending: Unlocking the Value in Your Home
Are you sitting on untapped value in your home? If you’re a homeowner in Ontario, equity-based lending could be the key to unlocking new financial opportunities. Whether it’s for renovations, consolidating debt, or investing in a new property.
What is Equity-Based Lending?
Equity-based lending is a financing solution that allows you to borrow against the equity you’ve built up in your property. Unlike traditional loans that focus heavily on your income or credit score, these loans are primarily secured by the value of your home. This means if you have significant equity, you may qualify for funding even if your income or credit profile isn’t perfect.
Who Can Benefit?
Equity-based lending is ideal for:
Homeowners looking to access funds for renovations, business opportunities, or debt consolidation
Self-employed individuals or those with non-traditional income sources
Clients with less-than-perfect credit but strong property equity
Investors seeking to leverage existing properties for new purchases
Seniors looking to supplement retirement income or stay in their home longer
How Does It Work?
Lenders assess the current market value of your home and subtract any outstanding mortgage balance to determine your available equity. You can then borrow a percentage of that equity, often up to 80% as a lump sum or line of credit. Approval is typically faster and less documentation heavy than traditional mortgages.
Key Benefits
Quick Access to Cash: Equity-based loans generally have faster approval times.
Flexible Qualification: Property value takes priority over income or credit.
Larger Loan Amounts: Borrow more based on your home’s value.
Important Considerations
Higher Interest Rates: In few cases, rates may be higher than traditional mortgages, especially with private or alternative lenders.
Risk to Your Home: Your property is collateral, so it’s important to have a clear repayment plan.
Professional Guidance: Navigating the options can be complex. Working with a mortgage professional ensures you make informed decisions.
Why Work with Seventy Seven Park?
At Seventy Seven Park, we specialize in personalized mortgage solutions—including equity-based lending. With access to a wide network of Tier 1 lenders and private lenders, we help you find the right product for your needs, even if your situation is unique.
We offer a free 30-minute discovery call to discuss your goals and review your options. Bring your recent mortgage statement and property details, and let’s see how we can unlock your home’s potential.
Ready to explore your equity options?
Contact Dominic Mascoll at (416) 525-2918 or dmascoll@seventysevenpark.ca to book your free discovery call today!