The Equity Takeout may be a variable rate arranged like a line of credit (where you withdraw case at your discretion) or a fixed rate.
Traditional lenders in Toronto allow you to borrow not more than 80% of your home’s equity while private lenders go up to 85%. The Canadian government implemented this guideline in response to the 2008 credit crunch to ensure borrowers do not overstretch themselves. This means if your home equity is $200,000 as per our example above, you can get a maximum of $160,000 with a traditional bank. If you are hard-pressed for cash and you don’t have any other source, you may have to go to a private lender. However, you expect to pay higher interest rates with a private lender. There are several equity takeout options available to Toronto borrowers. At Approved Mortgage Broker, we will guide you on the best takeout option given your particular circumstances. Different lenders have different equity takeout terms – we will help you hunt and negotiate for the best deal. You need an experienced mortgage broker by your side because it is in a lender’s best interest to give you the highest possible interest rates. Contact the Approved Mortgage Broker team today for professional guidance throughout the process.