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Frequently Asked Questions About Home Equity Loans in Vancouver
What documents do I need to apply for a home equity loan in Vancouver?
Applying for a home equity loan in Vancouver is easy; all youâll need is:
- I.D. showing that youâre at least 19 years old
- Proof of address
- Your bank account details
- Your propertyâs full details (including information on any existing mortgages on it, and your ownership documents)
- Proof of income
- Other financial documents that illustrate all of your assets and debts
With this information a lender can then assess your financial position and whether they are comfortable lending to you.
What credit score do I need for a home equity loan in Vancouver?
Most traditional lenders (like banks and credit unions) have a minimum credit score threshold of 650 for their loans. As Vancouverâs average credit score is 703, most local borrowers already meet this criteria. However, there are plenty of alternatives for those not meeting this requirement; some of the lenders listed above will cater to lower credit score borrowers. You just may have to pay slightly more in interest.
Where can I get a home equity loan in Vancouver?
Home to nearly a million homeowners, Vancouver offers a bustling loan marketplace for its residents. The list in the table above is a good place to start; there are traditional lenders, like banks and credit unions, many online lenders, as well as some alternative lenders for those looking for more bespoke loan terms. With so many options, Vancouverites are sure to find the right lender for their needs.
How long does it take to get a home equity loan in Vancouver?
That depends on which lender you apply to. Most traditional lenders have fairly slow processes, and it can take up to six weeks to process your application and release your loan funds. Some other lenders, like online lenders, can offer shorter turnaround times – sometimes as short as a week.
What fees do I have to pay for a home equity loan in Vancouver?
Every lender charges slightly different fees, so itâs always important to ask before applying for your loan. You may have to take into account:
- Home appraisal fees
- Loan origination fees
- Late payment fees
- Early repayment fees
- Closing fees
- Legal fees
How much can I borrow with a home equity loan in Vancouver?
This depends on the value of your home, and whether you have any other loans secured against it. In theory you can borrow up to 85% of your homeâs value. Vancouverâs average property price is just over $1.23 million, so this means the average home has a theoretical borrowing room of $1.046 million. But the average mortgage in Vancouver sits at $595,000 (the highest level in the country), and this must be accounted for, as you canât borrow against whatâs already mortgaged! So for the average property in the city, the borrowing room reduces to ($1.046 million – $595,000) = $451,000.
What are the alternatives to a home equity loan?
If you are one of the 63.7% of Vancouver residents that owns their own home, you should know that a home equity loan is not the only route you have to access cash. You might also consider a home equity line of credit (HELOC), a second mortgage, or a mortgage refinancing. Each option has its own pros and cons, so be sure you understand what will work best for your circumstances.
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