Earn MORE With Your Money

There is no difference between a mortgage and a home equity loan. When thinking about a mortgage, typically "buying a home" comes to mind. This is the mortgage you get to purchase a property and is typically the "first mortgage" registered on title. A home equity loan is often referred to as a second mortgage (if the original mortgage has not been paid off) which you can get if there is sufficient equity built up in your property.

Banks are regulated by the Office of the Superintendent of Financial Institutions (OSFI) which govern the way bank funds can be used as they are leveraging the deposits of their customers. Changes in regulations set by OSFI in has resulted in the lending criteria for banks to become significantly tighter in recent years. Even though the bank wants to make the loan on your property which has sufficient equity, they cannot. There is a certain set of criteria for credit scores, debt service rations, income verifications, and more which must be accomplished or the loan will be unable to fund. Even in situations where the property has a lot of equity, and even clear title, the applicant could be turned down for an equity loan. Fortunately, there are institutions and private lenders which do not fall under the umbrella of the OSFI and are able to lend money outside of these restrictions. If you have equity in your property, EquityApproved.ca works with investment institutions with flexible requirements and private lenders who are willing to analyze your loan based on the available equity you have in your home. Reach out for a discussion with no risk or obligation to see how much you can qualify for today.

Typically, $20,000 would be a minimum requested for a private home equity loan.

When you lend money to a borrower, they will pay you back with a set amount of interest. The principal, or original amount of the loan, is your investment. The return on investment is the interest you recieve on the loan. The final return on investment can be calculated when you total the money you recieved back after the loan has been paid out, including any fees such as prepayment privileges. Borrowers require private funds when they are in situations where the bank will not be able to finance them. Reasons for bank declines include being off work due to injury or market slowdown, having collections on credit file, and having income or property tax arrears. Regardless of the amount of equity in the property, the bank will not be able to lend outside their guidelines. The idea is to fix the immediate problems for the borrower so that they once again can fit within the bank guidelines. Sometimes you may hear of private funds referred to as "bridge financing" as they are meant to bridge the gap until the borrower can once again qualify with traditional institutions. Once the arrears are paid and the borrower is back to work, their credit score will increase and then more options are available to them. That is typically when the borrower will then have the other institution pay out your private loan. Other scenarios include having an investment mature, sale of another property, or inheritance. Lending can be done through your personal savings, business accounts, or even registered funds such as RRSP and TFSA to grow your portfolio tax free!

No. EquityApproved.ca is the mortgage brokerage which is arranging the loan and you are the direct lender. We never receive any money from you and you are not investing in our brokerage. When making a mortgage investment, you are directly lending your money to another individual with the security of their real estate backing the loan. The loan, handling/disbursement of funds, and registration of mortgage on title is handled in trust through a real estate lawyer. EquityApproved.ca simply sources and arranges the transaction between the parties involved.

It is free to be a part of the EquityApproved.ca lending network. We only need to understand your lending criteria and we can start notifying you of lending opportunities with matching criteria.