The Difference Between a Home Equity Line of Credit and an Equity Loan

Homeownership provides a potential source of borrowing power, as once you build up home equity, you can tap it as a source of funds when you need money.

The equity – the difference between your home’s fair market value and the balance on your mortgage – can offer some of the lowest-cost lending available, through either a home equity loan or a Home Equity Line of Credit (HELOC).

Home equity loans:

Simply put, it is a second mortgage that allows you to access real estate equity in one lump sum. After the loan closing, the lender either cuts a cheque for a lump sum or wires the funds to the borrower.

If you own a home worth $300,000 with a $200,000 balance on your…

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Toronto Market Report

Home sales in the Greater Toronto Area (GTA) were down 10.7 percent for August 2021 from August 2020. The average sales price year-over-year saw the biggest increase in detached homes which were up 11.2 percent from August 2020 with an average price of $1,674,641.

The Toronto Regional Real Estate Board (TRREB) is reporting the third-best sales result on record for the month of August. While the market has taken its regular summer breather, it is clear that the demand for ownership housing remains strong. At the same time, the supply of listings is down. The result has been tighter market conditions and sustained competition between buyers, resulting in double-digit annual increases in selling prices.

Greater Toronto Area…

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Ottawa Market Report

Home sales in Ottawa were down 22.8 percent for August 2021 from July 2020. The average sales price year-over-year saw the biggest increase with bungalows at a 13.3 percent with an average sales price of $635,886.

Members of the Ottawa Real Estate Board sold 1,572 residential properties in August through the Board’s Multiple Listing Service® System, compared with 2,006 in August 2020, a decrease of 22 percent. August’s sales included 1,175 in the residential-property class, down 25 percent from a year ago, and 397 in the condominium-property category, a decrease of 9 percent from August 2020. The five-year average for total unit sales in August is 1,684.

August’s unit sales followed a trajectory typical of the resale…

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