Do you wish to have the convenience of immediate access to the equity in your home when it suits your needs? Then a home equity line of credit might be the right mortgage product for you.
A home equity line of credit, or HELOC, is a revolving line of credit secured by your home that allows you to use the equity that you have in your home to finance home renovations, buy a car, or purchase a second property. Accessing the available credit is as simple as writing a cheque or using the issued credit and/or debit card. You can advance funds at any time, pay them off in full at any time, or make monthly interest-only payments on the funds that you have advanced. Interest rates are typically much lower than unsecured lines of credit with higher limits.
In Canada, your HELOC cannot exceed 65% of your home’s value. However, it’s also important to know that your outstanding mortgage loan balance plus your HELOC cannot equal more than 80%.
Contact us today at RedPath Financial and we can help you determine if a HELOC would be right for you.