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In most cases, under the H.E.L.P. Home Equity Loan Program if you have equity, you're approved!
What is meant by the phrase:"if you have equity, you're approved"?
In most cases, when you are only borrowing to a maximum of 80% to 85% of your home's value, the mortgage is granted mainly on the equity in your property, not necessarily on your past credit history or confirmable income. Over this amount, your income and credit history is looked at more closely. Restrictions may apply on condominiums, smaller urban or rural areas and on higher priced homes or income properties.
What is the maximum amount I can borrow under the H.E.L.P. Home Equity Loan Program?
On approval, you can borrow up to 90% of the current value of your home or 95% on an exception basis. You do not have to pay out your existing 1st. mortgage. You may simply borrow the difference as separate mortgaging.
Do I have to pay a fee under the H.E.L.P. Home Equity Loan Program?
Yes. The same as Canada Mortgage & Housing Corporation (C.M.H.C.) the premium is based on the percentage advanced. In most cases, the H.E.L.P. premium is the same as if the combined first and second mortgaging where financed under a C.M.H.C. 1st. mortgage, with the premium ranging from 0.75% of all mortgaging on property. In some cases, higher rates or fee premiums may apply based on lack of confirmable income, credit history and/or type and location of property.
Can I only obtain a second mortgage under this program?
While this web site was designed specifically for second mortgages, we also arrange first mortgages at rates up to 1% below the posted bank rates. Unless stated otherwise, first mortgages are for a maximum five year term and second and/or third mortgages are one year terms. Rates quoted are discounted from Canadian Banks, Trust Companies and Insurance Companies, along with institutional secondary funds including both private and self-directed R.S.P. lenders. A lawyer must register all mortgage funding against the title of your property. To determine the actual market value of your home, an inspection or appraisal may be conducted. Rates, long term amortization and percentage advanced are subject to approval.
Who actually lends me the money?
The H.E.L.P. Home Equity Loan Program is a lending plan formulated predominately by self-directed R.S.P. investors who's funds are administered by Canadian Banks and Trust Companies. As an alternative to stocks, bonds and mutual funds, these self-directed R.S.P.'s are also used to fund mortgage investments. These self-directed R.S.P. investors may also use private funds, in additional to the Trust Company and Bank managed R.S.P. funds.
What will happen after I request a H.E.L.P. loan?
Your loan request will be reviewed and you will receive a response by email or phone. (usually within 48 hours). We will contact you with your approval and then you can decide to proceed from there. No pressure, No obligation.
What are the interest rates?
The interest rate for the H.E.L.P. program is currently 7.85%. (1 year fixed rate)
7.85% 1 yr. fixed rate with all renewals tied to the Royal Bank of Canada rate. So that clients are assured of an ongoing low second mortgage rate, any renewal can never exceed the greater of 7.85% or a maximum of 3.85% above the Royal Bank of Canada 1 yr. open first mortgage rate.
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