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Calgary’s energy, financial services, film and television, transportation and logistics, technology, manufacturing, aerospace, health and wellness, retail, and tourism sectors have created significant employment opportunity over the years. Closely tied to that, the value of real estate in Calgary has been shooting upwards. For this reason, home equity loans are very useful in Calgary because as the value of property increases, that equity difference can be taken out as a secured financing. If you are interested in home equity loans in Calgary. Home equity loans are easier to get a hold of in comparison to other types of loans because of their secured nature, and Smarter Loans will show you just how you can do it.
Over the years we’ve been able to identify which providers in Calgary are reliable through helping many others just like you successfully procure their loans.
We’ve filtered through the countless qualified providers available, and created an online directory where you can access all of them in order to make your decision. You’ll have a great chance of securing approval if you simply scroll down to compare terms, rates and offers.
After you’ve compared your options, Smarter Loans has promised to help you with making smarter decisions with your loans from start to finish. Which means that once you’ve made a decision, you can apply directly from the same directory by clicking “apply now” beside the name of your chosen company to proceed. Alternatively you can also pre-apply with Smarter Loans if you would prefer for us to connect you with a provider based on maximum compatibility.
Calgary is home to nearly 325,000 owner-occupied homes, and the people living in these properties may be able to access financing based on their home ownership. The amount available to borrow against the equity in these homes depends on two things: the value of the home, and whether there are any other loans secured against it. This is how the math works:
So, using Calgary’s average property data, the calculation looks like this:
To apply for a home equity loan in Alberta’s largest city, you’ll need:
With this information a lender can then assess your financial position and whether they are comfortable lending to you.
Every home equity loan provider has their own set of financial criteria they assess applicants on, and some will take your credit score into account. But because every lender has their own criteria, there is no single benchmark for what credit score you’ll need to be approved for a home equity loan. There are providers available for people with both good and bad credit. A good rule of thumb, though, is that traditional lenders (like banks and credit unions) have the strictest requirements, and they ask for a credit score of 650 or above. Given Calgary’s average credit score is 665, most residents pass this test.
73% of Calgary’s residents own their own home, and if you’re one of this number and looking to borrow money against it, you have several options – most commonly a home equity loan or a home equity line of credit (HELOC). Don’t get these two confused though! A home equity loan provides you with an upfront lump sum, for which you make fixed payments for the life of the loan. A HELOC is like a credit card secured against your home – you can only borrow up to the maximum amount allowed, but this can be taken out in smaller sums, as and when you need it. And because of this, a HELOC does not have a fixed repayment schedule.
Every loan type has its own set of advantages and disadvantages, and home equity loans are no different. Here are the main points you need to consider with a home equity loan:
Pros:
Cons:
