CAN I GET A HOME EQUITY LOAN FROM THE BANK ON POOR CREDIT OR NO INCOME?

2022-12-07
BY: lendmax Comments: 0

Canada is undergoing a housing and rental affordability crisis due to sudden changes in mortgage
regulations, stagnant wages, and population growth. If you’ve been paying attention to the real
estate market at all recently, you’ve likely heard about the soaring property prices. If you’re in the
market for your first home, this news might be pretty disappointing. However, homeowners,
know that this increase in property values translates to more home equity.

For most Canadians, buying a home is perhaps going to be the biggest financial transaction of their
lives. In essence, this means that a large portion of your money is locked up in the equity of your
home, without access to it. That’s where home equity loans come in.
Whether you’re new to the real estate industry or not, you must have heard of home equity loans.
But, not so many know what they are.

What is a home equity loan?
A home equity loan is a secured type of loan that allows you (the borrower) to use the value of your
home as collateral. The loan amount is typically based on the equity of the home, which is the
difference between the market value of the property and the balance of any outstanding mortgages.
Home equity loans can be used for a variety of purposes, including home improvements, debt
consolidation, and investment activities.

Before taking out a home equity loan, it’s important to understand how these types of loans work
and what your options are if you can’t make your payments. You should also consider whether a
home equity loan is right for you given your financial situation and goals.
So, how?
Home equity loans can be a lifesaver during financial hardship or when your credit is bad. If you’ve
arrived here, you’ve probably been searching for “getting home equity loans with bad credit” or
“how to get a home equity loan approved without an income.” In addition to that, you’re possibly
considering traditional banks whose requirements you likely won’t meet based on your
predicament.

So, the question beckons: is it possible? Emphatically, yes.
It is possible to get a home equity loan despite either a bad credit score or no income. As stated
above, traditional lenders and banks usually require that you have employment, amongst other
things, for you to be able to take out a home equity loan. However, working with a flexible lender
like Lendmax allows you access to your property equity when you need it
Since home equity lenders focus on the equity in your home, they do not consider your level of
income as a factor. So, whether you have low or no income, it’s not a determinant when working
with some lenders, because your home is at stake. And, if you’re unable to, they will take possession
of your home.

Conclusion
When it comes to settling scores, it is possible to get a home equity loan even with poor credit or no
income. However, not so many lenders or banks can offer help. Very few lenders take on this risk.
You should also be aware that your ‘situation’ may attract higher interest.
As usual, if you’re considering a home equity loan, it is recommended that you speak with a financial
advisor to see if it’s the right option for you.

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