What is a Secured Line Of Credit?
A secured line of credit is when you apply for a loan and you use an asset or personal items, such as your car or house, as collateral for the loan. Obtaining an Abbotsford line of credit is an excellent way to have access to a lump sum of money whenever you need it. Some borrowers use this credit line as a ‘just in case’ scenario where if something were to happen outside of their control they would have a way to pay for the extra expenses.
By choosing to provide an asset as collateral you will be offered a lower interest rate than an unsecured line of credit. An unsecured credit line is similar to a credit card where you do not have to provide anything to secure your loan with.
Benefits of a Secured Line of Credit
An advantage of this credit line is that you have access to this money whenever it is necessary. You can access however much you want at any given time. It can also save you money because you can be offered lower rates and better deals than most credit card companies. This is also a great option if you have a low or inconsistent source of income.
Where to Get a Secured Line of Credit
A secured line of credit can be obtained as a first or second mortgage. In the case of a second mortgage, this means you do not have to use your current lender to obtain this home loan. Your Mortgage Source will shop around the market and see what rates different lenders are offering before you commit to one financial institution. Your local Abbotsford mortgage broker is connected with different lenders so they can assist you by providing credible insight on who they think the best lender is for your situation.
For more information on obtaining an Abbotsford line of credit, please contact your Abbotsford Mortgage Broker, Alex Kotai, at Your Mortgage Source: 604-556-3893.
For more information on our mortgage products and your preferred Abbotsford Mortgage Broker please visit our website at www.ymscanada.ca.