A stand-alone home equity line of credit (HELOC) is a revolving credit product secured against your home. Most people get a HELOC as a way to unlock the equity that have built up in the home. Typically it is registered as a charge in the 2nd position, behind the 1st mortgage. Less often, it is the only mortgage on the property. In either case, it cannot exceed 65% of your home’s market value (an appraisal is required).

A HELOC is a revolving credit product. That means you can draw funds from it, pay it off (partially or completely), and then borrow again at any time in the future. If there’s a balance on the HELOC account, you’re usually required to pay a minimum of 1% of the balance.

If you don’t use the money from the HELOC, you don’t have to make any monthly payments.

Why would you want a HELOC?

• Borrow against your home at low interest rates
• Get the funds you need to do home renovation projects, such as a new kitchen or a finished basement
• Repay and consolidate high interest debt, such as credit cards and other un-secured loans
• If you expect changes in your employment or income, get a HELOC as a “safety net” to provide funds for a rainy day

It’s easy to apply on my secure web page, or call me at 905-484-9958 to discuss your needs.

Home equity lines of credit carry certain risks. Please read more on this Government of Canada web page.