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The Basics of Lending

Personal loans and home equity loans are common options for borrowing money to get access to extra cash. Both types of debt have pros and cons; one is not necessarily better than the other. The best option depends on your personal financial situation and needs.

What are Personal Loans?

Personal loans are typically general-purpose loans that you can use at your discretion for anything—renovating, debt consolidation, emergency expenses, or a vacation. Personal loans can be difficult to get and have strict qualification requirements, especially by big banks.

Benefits of Personal Loans

Basics-Benefit-Icon-Affordable

Affordable loans with a competitive interest rate

Basics-Benefit-Icon-NoRisk

Set repayment period and fixed interest rates means knowing how much you need to pay each month

Basics-Benefit-Icon-Establish

Establish or improve your credit history with on-time repayments

Basics-Benefit-Icon-LessCost

Significantly less costly than a cash advance or a payday loan

Basics-Benefit-Icon-Funds

Funds are available faster than with a home equity loan

What are Home Equity loans?

If you own a home, home equity loans are an alternative to personal loans. With home equity loans, you use the equity you have in your home as collateral for the debt—which can get you a lower interest rate than a personal loan. When you borrow against the equity of your home, you may be able to secure lower interest rates, which can make home equity loans more affordable than personal loans.

The Right Way to Use a Home Equity Loan

Home equity loans can be valuable tools for responsible borrowers. If you have a steady, reliable source of income and know that you will be able to repay the loan, its lower interest rate makes it a sensible alternative. Fixed-rate home equity loans can help cover the cost of a single large purchase, such a new roof on your home or your child’s university education.

Benefits of Home Equity Loans

Basics-Benefit-Icon-Affordable

Affordable loans with a competitive interest rate—much lower than on credit cards and other consumer loans

Basics-Benefit-Icon-NoRisk

Set repayment period and fixed interest rates means knowing how much you need to pay each month

Basics-Benefit-Icon-Establish

Establish or improve your credit history with on-time repayments

Basics-Benefit-Icon-LessCost

Great for consolidating debt, such as credit card bills and car loans, into one manageable payment

Basics-Benefit-Icon-Funds

Funds are available much faster than with a home equity loan

Enliven Personal Loan vs Enliven Home Equity Loan

Personal Loan
Home Equity Loan
Easy 5-min online application

Yes

Call Us

Fast processing

Yes
Usually within 24 hours

Yes
Same day or in the next few days

Save money

Yes
Less costly than cash advance or payday loan

Yes
Lower interest rates than credit cards or other consumer loans

Establish and/or improve your credit rating with on-time repayments

Yes

Yes

Eligibility based on income, credit history, and ability to pay back loan. The better your credit profile, the more money you can borrow.

Yes

Yes + value of your home and current market conditions

Fixed interest rate. No need to worry about the government increasing the benchmark rate.

Yes

Yes

Interest rates based on your creditworthiness. The better your credit profile, the lower the fixed rate.
Considers credit score, plus many other factors, to give overall financial picture
Overall financial picture + value of home and where you live
Fixed repayment period (months)
12, 24, 36, 48, 60 – longer periods lower your monthly repayment but you pay more total interest
12-60 month term with amortization periods up to 30 years
Must own a home or have collateral
No
Yes

Copyright 2016 Enliven Financial Inc. FSCO Licence #: 12698. All Rights Reserved.

[i] When compared to paying monthly, semi-monthly and bi-weekly payments reduce the total cost of borrowing over the term of the loan. Other factors may also affect the total cost of borrowing. Please see your loan documents for details.