Home Equity Line Of Credit
Helping you achieve your dreams of home ownership
A home equity line of credit (HELOC) is a secured line of credit that allows homeowners to access equity in their home at anytime up to a set limit. These products can be wonderful if managed correctly, but potentially dangerous financial tools as it’s possible to go years without ever paying down the balance.
What are the differences between a Home Equity Line of Credit and a mortgage?
- A HELOC is fully open and can be paid in full at anytime, whereas you will pay a penalty for breaking your closed fixed mortgage term early.
- With a HELOC each time you pay down the balance you can utilize the funds again without having to go through the application process.
- With significantly lower interest rates, HELOCs can be more affordable than loans and credit cards.
- As HELOC funds are available for immediate use, you can simply write a cheque for unexpected expenses.
- with a HELOC you pay interest every month, with a mortgage interest is only charged every 6 months.
- Most HELOC has interest only payments where a mortgage has monthly payments based on your amortization period.
These are only some of the differences between a mortgage and a Home Equity Line of Credit. It is important to explore all details of the products to ensure if they are right for you. If you can’t decide between the two, we now have access to combo products that have both options combined into one.