Six ways a home equity loan can help you achieve your financial dreams
Whether you require temporary financial support or just want to realize your dreams sooner, Alpine Credits is the best banking alternative for helping you leverage the value in your home
Many people think of leveraging equity in their home when they need money as a last resort. But that’s not the case. Your home is your best collateral, which can be used to your advantage. Lenders view borrowing against it as low risk, which means you’re likely to get the lowest investment loans rates, with lower interest payments—and that means maximum profit in your pocket. Used proactively, a home equity loan can help improve your finances, and your life, in numerous ways. We spoke to Colin Atwood, General Manager, of Alpine Credits about some of the positive—and profitable—things you can do with a home equity loan, “We focus on Equity Lending. If you have built enough equity in your home, you can be instantly approved”, says Atwood. It is your money which can be used in many different ways, such as:
- Starting a business
In our current world, where many jobs are unstable, starting your own business, either as a full-time enterprise or a side-hustle, could be a valuable investment in your future earnings. Some business loans can be notoriously hard to procure from traditional banks, but a $10,000 home equity loan could be the boost you need to get your business off the ground.
- Renovating to earn extra income
Renovating your home isn’t an expense—it’s an investment. Building an addition, finishing your basement, or making any number of upgrades only makes your home more valuable. Whether you renovate to sell or to create a rental space to bring in extra income, the value you add often more than covers the cost of interest on a loan. Renovations still cost money, which is where an extra $10,000 from a low-interest home equity loan can come in handy.
- Buying an investment property
Taking out a traditional mortgage to purchase an investment property can be difficult—and expensive. Most banks require you to bring in enough non-rental income to make your monthly payments, and that’s on top of your pre-existing primary housing expenses. Purchasing an investment property with the help of a home equity loan can be much easier, and less expensive.
- Funding an education
Few things are more valuable than a good education. Unfortunately, few things are also more expensive. Paying for your child’s education through a bank loan or student loan can lead to debt for you or start your child out with high-interest debt early in life. Paying for their education though a home equity loan can make much more financial sense. In these days of job uncertainty, many people are also re-educating themselves. A home equity loan can be a solid investment in your own future earning potential too.
- Consolidating your debt
If you have a significant amount of debt spread across several credit cards, personal loans, and/or lines of credit, consolidating them can help you better keep track by only having to deal with a single monthly payment. Interest rates for debt consolidation loans are usually much lower than rates offered by credit card companies, especially if you use a home equity loan.
- Lightening cash-flow issues
The COVID-19 pandemic has upended people’s lives in ways they never expected. Unfortunately, this has left many requiring temporary financial support, especially those who are self-employed. A $10,000 home equity loan can be just the thing needed to help you get through a time of hardship and uncertainty.
There are many ways a $10,000 home equity loan can help change your life—and Alpine Credits can help. For more than 50 years Alpine Credits has helped Canadian homeowners get the home equity loans they need, when they need it, regardless of their credit age or income. They lend based on the available equity in their home. The approval process is simple, easy, and focuses on the amount of equity you have built in your home, rather than credit scores, which is what most banks look for.
Contact Alpine Credits today to start living your financial dream.