Detailed information
About lender
Capital Direct is a Canadian lending company that provides home equity and residential mortgage financing. It was founded in 1997 to help Canadians use the equity in their homes to finance dreams and drive long-term prosperity. It has already provided more than 2 billion dollars in funding for different goals.
A Canadian homeowner with an appropriate amount of equity built up in their property can apply for a large loan to alleviate various credit situations. For example, capital Direct provides loans for home improvement and other needs such as paying for education and weddings, small businesses, buying investment properties, eco-friendly renovations, and different temporary situations.
Capital Direct has two loan options: a mortgage and a home equity loan.
The application form can be found on the company’s website, and filling it out takes about 4 minutes. Meanwhile, the whole process of approval takes about 4-5 days. The company has offices in BC, Alberta, Ontario, Nova Scotia, New Brunswick, and Prince Edward Island, and the head office is located in Vancouver.
Features
Capital Direct provides loans for situations requiring considerable money like paying for education and weddings, small businesses, buying investment properties, eco-friendly renovations, and other temporary conditions.
Its main specialization is home equity and residential mortgage financing for individuals.
In addition, the company has a vast range of available loan amounts: from $10,000 to $3,000,000.
The company targets homeowners. Capital Credit provides loans in case the customer has a good home. The approval system is based primarily on the equity value of the clients’ homes.
Pros and cons
One should get acquainted with the advantages and setbacks of the services provided by Capital Direct.
Pros
A long list of loan purposes;
The company has existed for a long time and is BBB accredited;
A big range of available amounts for the loan: $10,000 - $3,000,000;
This company’s services would be suitable for people who need a long-term loan;
The simple application form may be found directly on the website and filled in 4 minutes;
The company provides mortgage services.
Cons
The website doesn’t contain a FAQ section;
The annual mortgage interest rate is calculated monthly, not in advance;
The company's specialization is very narrow as it is mainly targeting homeowners.
As we see, Capital Direct has some advantages. It is BBB accredited, and also Capital Direct mortgage specialists are members of several organizations across Canada, such as IMBA, AMBA, MBABC, Calgary CCI, and others. Also, they provide several loan options and an extensive range of available amounts for the loan.
However, there are some disadvantages. The most significant is the lack of essential information such as the APR.
Loan conditions
Loan terms range from 12-24 months. For an example of a $150,000 equity loan, the total cost of the loan and all applicable fees would be $34,540.97, resulting in an APR of 10.92%.
For a home equity loan, the loan period varies from 6 months to 5 years, and the APR starts from 6.95%, while amortization is 20 years.
The rate for a First Plus Mortgage is 3.99%, and the amortization period is 25 years. For a Developer’s Mortgage, the rate is 8.5%, and the amortization period is 25 years.
What is more, Capital Direct not only provides money for the loan but also works with different mortgage brokers, lenders, and investors.
The process of approval takes about 4-5 days. Firstly, the client must fill out the application form on the company’s website and get approved. Capital Credit’s approval system is based on the clients’ home value. Therefore, the approval depends on the customer’s amount of equity in the property. In other words, the customer’s house is a guarantee that the loan will be repaid.
Methods of loan funding
After the customer is approved for the loan, the required money will be transferred to their bank account.
