When you refinance your mortgage, you may face hefty penalties for breaking your mortgage contract. With a home equity loan, you are able to keep your first mortgage in place while still taking advantage of the equity in your home and obtaining the funds you require. That means you don’t pay a penalty for breaking your mortgage. Even though you may pay higher rates on a home equity loan, you’ll still save money by avoiding large prepayment penalties.
At Tribecca Finance, we can offer the lowest home equity loan rates in Ontario with flexible terms and a variety of payment options. Our home equity loans can be customized to meet your specific requirements, meaning we can match the term to your existing mortgage, provide an open home loan, and more. Additionally, we offer amortized principal and interest payments, interest-only payments, or a custom payment plan with zero payments for up to 12 months.
Refinancing your mortgage can be a long, drawn-out process that takes weeks to find out if you’re approved. At Tribecca, we provide same-day approvals and funds within days.
Unlike a refinance, with a home equity loan, you are not required to re-qualify with the more stringent mortgage stress test guidelines. These require homeowners to qualify at a rate 2% higher than the contractual rate, which may be difficult for some people. Home equity loans are not qualified this way and allow you to tap into the equity in your home that you’ve worked hard to build.