A home equity loan is just that, a loan that is backed by the equity in your home. The equity in your home is simply the difference between the market price (what you could reasonably sell it for in a fair market transaction) and how much you owe on it (the existing size of your mortgage).

At its heart, a home equity loan is a conversion of your wealth from a form you can’t spend to one that you can. If your house is worth a lot more than you owe on it, that’s great – but the grocery store doesn’t accept equity.

Mortgage Magic allows you to access the hard earned savings you have put in your home so that you can put it to more productive uses.

Private lending is simply the act of lending when the lender is not a bank. Many of the same mortgage services are available from a private lender but they are more flexible than a bank when it comes to underwriting policies and can thus lend to a broader range of clients. Perhaps most importantly, considering a private lender does not exclude you from the services of a bank. We can place you with whatever loan is best for you. This could be a private loan or it could be a mortgage from a traditional bank.

Private lending is ideal for self-employed Canadians. Typically, a major bank will only give you a loan up to a maximum of 65% LTV. However, you can still buy your home with just 20% down by topping up your traditional bank mortgage with a loan from Mortgage Magic.

If you are taking out a home equity loan and you have an existing mortgage, then that home equity loan is a second mortgage. It allows you to finance investments, consolidate debt, repair your credit, renovate your home, or go on a family vacation.

Not to worry. Our loans are based on the equity you have accumulated in your home, so less than perfect credit ratings are not a hindrance.