Kamloops Home Equity Loans



Do you want to access some of the equity in your home? If your home has increased in value you may want to access some funds to make home improvements, investments or pay down some debt. The following are some things to consider:
1. If I’m in the middle of my mortgage term, what pre-payment penalty might apply if I break the term and refinance? 2. What rate will I be offered and how does that compare to my current interest rate? The government has made many changes to mortgage rules lately that make a refinance rate higher than a purchase rate. 3. What will my amortization be? Do I want to continue with my existing payment schedule or should I extend or shorten my current amortization.

1. Get a pre-approval – most Realtors will ask you to do this before starting a home search and it’s important to know the price range and corresponding payment that you can qualify for and are comfortable with. In a pre-approval Mortgage Brokers will look at the following:

a. Job history and source of income (this can be complicated unless you have been at a permanent full-time job with guaranteed hours for many years)

b. Credit rating – an excellent credit score is over 720 but we can have success with lower scores as well.

c. Source of your down payment (quick fact – minimum down payment for all home buyers is 5%) – this can be from savings, RRSP, gifted from an immediate family member or potentially borrowed from a line of credit.

d. Asset review –  (to show your net worth and financial stability)

e. Liabilities – these are your revolving debts such as credit cards and lines of credit and any installment loans such as car payments. Most, but not all, debts appear on your credit report so it’s important to disclose any child/spousal support obligations or debts not listed on your credit report