The GTA can be a financially stressful place to live; especially in the
cities. Owning a home of your own doesn’t erase your problems so much as it
changes the nature of them, but once you’ve built up some home equity you do have options. Home Equity Loans in
the GTA can be used to unlock this home equity - value created from the
difference between your home’s market value and the outstanding balance of any
liens on the house, for example, your first mortgage. However, the major banks
that handle most mortgages in Canada can be strict on their requirements and
take a long, long time to actually process your eligibility. Private mortgages
in the GTA usually take less time to get approved and slightly more flexible
(though there are advantages to going through a bank, if you have that option -
they take time for a reason).
For a First Mortgage
The time-based advantages of using a private mortgage broker for your
mortgage do not often come into play in a first mortgage. After all, when
looking for a first home, it is not often that you are doing so out of fear of
impending homelessness. However, private loan brokers are often more willing to
take a risk on an unknown person, where banks will be reluctant to cooperate.
As such, for those in a less than stellar financial situation, privately
brokered mortgages can be a lifesaver when looking for a new home.
For a Second Mortgage (Home Equity Loan)
Depending on your needs a second mortgage
, also known as a home equity
loan, is more likely to be needed quickly and weighted against the hefty
requirements held by major banks. Home equity loans find good use as investment
tools, college tuitions, or emergency funds, and in the latter case will be
more likely to be something you seek through a private lending firm, as the
funds will be needed quickly. In the event that your home is heavily damaged
suddenly and needs to be repaired, a home equity loan can functionally pay for
itself. As home equity loans typically require excellent credit to get through
a bank, the majority of people may resort to a private mortgage. Privately
brokered mortgages are also a good way to use home equity to consolidate debts
- turning many high-interest credit card debts, for example, into a much lower
interest mortgage debt to be paid over many years, much less stressfully.
When life in the GTA bites you in the pocket, remember that your most
solid investment in life - your home - can save you, both through bank-brokered
and private mortgages in the GTA. Consider your needs and analyse your personal
situation when deciding whether to go through a bank or through a trustworthy private mortgage firm
, and you too can come out on top, with a
manageable debt and the value of your home’s equity well and maturely invested
into your life, your family, and yourself.