Terms & Conditions

Equity Life Line Loan

1. OUR ROLE & FEES

EquityLifeline.ca acts as an advisor and intermediary between homeowners and private lenders. We do not lend funds directly. We collect a service fee of the principal loan amount from the Lender (part of the administration fee - See Section 5) for our advisory and processing services.

2. ELIGIBILITY REQUIREMENTS

To qualify, you must:

Be a registered homeowner on title in Ontario
Have only one (1) existing first mortgage on the property
Maintain active home insurance with second mortgagee added as loss payee
Have no outstanding CRA debts or liens on the property (or must be paid from loan proceeds - see Section 2.1)
Have no outstanding property tax arrears (or must be paid from loan proceeds - see Section 2.1)
Loan-to-Value (LTV) cannot exceed 60% of property value (including existing mortgage and new loan)

2.1 CRA & Property Tax Debt Payout Requirement

If you have outstanding CRA debts or property tax arrears, these must be paid directly from the loan funds by the lawyer before advancing you the net difference. The lawyer will:

Verify outstanding amounts owing
Pay CRA and/or property tax authorities directly from loan proceeds
Provide you with the remaining net funds after all mandatory payouts and fee

Required Documents:

2 Government-issued photo ID (Licence + Canadian Passport)
Latest mortgage statement (showing balance and payment status)
Current property tax bill
Proof of active home insurance with second mortgagee endorsement
CRA statement of account (if applicable)

3. LOAN TERMS

Interest Rates: Set by the Lender at their discretion, typically 9.99-14.99% per annum. Interest is paid at the end of the loan term, not monthly. You make ZERO monthly payments.

Loan Term: Typically 8-12 months from funding date, subject to lender approval.

Repayment Options:

Refinancing with a traditional lender
Sale of the property
Lump sum payment
Renewal (discretionary, see Section 4)

4. RENEWAL & APPROVAL

Renewal is strictly discretionary and requires lender approval. Renewal is not guaranteed and is evaluated case-by-case based on payment history, property value, market conditions, and lender objectives.

All offers are conditional and subject to approval On Approved Credit (OAC). Application submission does not guarantee approval or funding.

5. FEES & COSTS

5.1 Borrowing Costs

Interest rates range from 9.99% to 14.99% on the total principal amount of the Equity Lifeline Loan registered on title. The rate is entirely determined by the Lender based on factors including loan-to-value ratio, property location, loan amount, term, and overall risk assessment.

Example Calculation:
You borrow: $50,000
Interest rate: 14.99%
Term: 12 months
Total estimated repayment amount: $57,500

This is the total estimated amount you would pay back when you sell or refinance at the end of your 12-month term.

5.2 Loan Processing & Administration Fees

Fees deducted from approved loan amount before funding:

Loan processing/administration: Typically 6-8% of loan amount (approx. $3,000-$5,000) - good loan-to-value (LTV) ratios receive better rates (lower LTV percentage = lower fees)
Legal fees: Approximately $850 (excluding disbursements, HST, lien registration)
Lender fees: As disclosed in loan agreement
Mandatory debt payouts: CRA debts and property tax arrears (if applicable) paid directly by lawyer

5.3 Early Repayment Penalty:

If you repay the loan before the end of your term, a 3-month interest prepayment penalty applies. This means you will pay the equivalent of 3 months of interest in addition to the principal and any accrued interest to date.

Example: If you borrow $50,000 at 14.99% (12 month term) and repay in 6 months:

Principal: $50,000
Interest accrued (6 months): $3,745
Prepayment penalty (3 months interest): $1,873
Total repayment: $55,618

All fees, rates, and mandatory payouts will be disclosed in writing before signing and are subject to change based on market conditions and risk.

6. PROPERTY & INSURANCE

Home insurance must remain active throughout the loan term with second mortgagee named as loss payee
Property taxes must be kept current after funding (any arrears paid at closing)
CRA debts must be cleared at closing (paid from loan proceeds)
Loan registered as second mortgage on property title

7. DEFAULT

In the event of default (failure to repay or breach of terms), the Lender may pursue legal remedies including demand for immediate repayment, legal proceedings, enforcement of security, or power of sale proceedings.

8. DISCLAIMERS

No guarantee of approval: All approvals are at lender's sole discretion
Timeline estimates: 3-5 business day funding is an estimate and may vary
Rate changes: Interest rates and terms subject to change based on market conditions
Independent advice: We strongly recommend seeking independent financial and legal advice
Net funds variability: Net funds received will vary based on mandatory payouts, fees, and individual circumstances

9. PRIVACY

Personal and financial information is collected for application assessment and shared only with lending partners, legal professionals, and service providers. We do not sell personal information to third parties.

ACKNOWLEDGMENT

By submitting an application or using our services, you acknowledge that you have read, understood, and agree to be bound by these Terms & Conditions.