GLOSSARY

Canadian Financial, Real Estate and Mortgage Glossary

How often this word is used
 
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88% - Very Often

Home Equity Loan


Synonyms:additional mortgage, secondary debt, two debts
Acronyms &
abbreviations:
HEL
Notes:Also known as an Equity Take Out (ETO).
Filed Under: financial-banking, mortgages
Tags: home loan, loan, mortgage
 

Definition of home equity loan (HEL)

home equity loan (HEL)
1. A loan that can replace or be added to the first mortgage. This type of loan is generally used when a home owner wants to make renovations to the property.

Related Terms and Acronyms:

  • cash out refinance   The taking out of a new mortgage on the same property in which the amount borrowed is greater than the amount of the previous mortgage. The difference is taken out in cash.
  • equity   The value of a property minus outstanding mortgage debt and other liens.
  • home equity (HE)   The part of a home's value that the mortgage borrower owns outright; the difference between the fair market value of the home and the principal balances of all mortgage loans.
  • home improvement loan (HIL)
  • home loan   A loan used to buy a home is referred to as a "mortgage."
  • mortgage (mtg)   A mortgage is a contract stipulating a specific real property, typically a residence or building, as collateral for a loan. The mortgage incurs a rate of interest that varies according to term and other features.
  • mortgage application   A document in which a prospective borrower details his or her financial situation to qualify for a loan.
  • second mortgage   A mortgage which ranks after a first mortgage in priority on a registered land title.
  • subordinate loan   A mortgage whose priority is below that of another mortgage; i.e., a second or third mortgage or a home-equity loan.
  • tandem loan   When one asset, usually a house, has two loans taken out on it.

More Related Terms and Acronyms

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