Any Canadian who has gone through the U.S. mortgage process knows that it is significantly more time consuming and certainly feels more complex than in Canada. But, is a traditional mortgage necessarily the right option for you? In the previous issue of Florida Homes Magazine, we explained the traditional mortgage options offered by RBC Bank®. In this issue we will outline two other real estate lending solutions, the Home Equity Loan (HE-Loan) and the Home Equity Line of Credit (HELOC). These alternative real estate lending solutions are available for Canadians and entail less time, less paperwork, and may in fact be a more economical option depending on your needs.
We begin with the HELOC which allows a borrower to take the equity out of their home and access it through a line of credit. This Product offers Prime based pricing with rates determined by credit score, loan to value, dwelling type and other contributing factors. The RBC Bank HELOC also gives you the added option of locking in balances at fixed interest rates for up to 15 years. The HELOC can give you access to up to 80% of your property value depending on the line size, borrower’s credit score and other factors. With Prime at a low of 3.25% this product is perfect if you have already purchased the property and plan to make some home improvements. Unlike the HE-Loan, the HELOC gives you the opportunity to pay down your balance and reuse the available credit. It is also a great safety net to have for your home in case of emergencies. With hurricane season in mind, it is an easy way to access cash for repairs.
Our second option is the HE-Loan which, like a traditional mortgage, can be used for a property purchase. The RBC Bank HE-Loan offers shorter terms, up to 15 years, with amortizations up to 30 years. The HE-Loan may be a more cost effective and faster financing solution than a traditional mortgage for Canadians wishing to buy or refinance a home.
RBC Bank is proud to be one of the very few lenders that are able to lend to Canadians by leveraging their Canadian credit history for better rate and term options. Creating value and making things easy for our clients is our primary objective. Come see us in one of our 86 branches in Florida, contact us at 1-800-236-8872, or visit our website at www.rbcbankusa.com.