Canadian Maple Leaf Licensing Info: Alberta Mortgage #MW-0511205,
FSCO (Ontario) #10315,
Saskatchewan Mortgage #315872, and all other provinces.
 
Division of

The Mortgage Group®


GLOSSARY

Canadian Financial, Real Estate and Mortgage Glossary

How often this word is used
 
^
88% - Very Often

Home Equity Line of Credit


Synonyms:borrow, debt, loan, trust
Acronyms &
abbreviations:
HELOC
Notes:Also known as a Home Line of Credit.
Filed Under: financial-banking, mortgages
Tags: credit, home loan, loan, mortgage
 

Definition of home equity line of credit (HELOC)

home equity line of credit (HELOC)
1. An open-ended loan, paid as revolving debt, that is backed by the equity in a property or home.

Related Terms and Acronyms:

  • credit   Money that a lender gives to a borrower on condition of repayment over a certain period.
  • debt consolidation   The replacement of multiple loans with a single loan, often with a lower monthly payment and a longer repayment period. It's also called a consolidation loan. CanEquity has access to Canada's best debt consolidation products, for more info about debt consolidation see our debt consolidation page.
  • home equity (HE)   The part of a home's value that the mortgage borrower owns outright; the difference between the fair market value of the home and the principal balances of all mortgage loans.
  • lien   A legal hold or claim of a creditor on the property of another.
  • line of credit (LOC)   A commitment by a financial institution to lend up to a specified maximum amount to a customer during a specified period of time.
  • personal loan   A loan made for personal, family, or household use as opposed to a business-type loan or a long-term mortgage loan to finance real estate.
  • refinance   To arrange a new loan for an increased amount or better terms whereby the old loan is paid off from the proceeds of the new loan.
  • refinancing   The act of paying off one mortgage with another mortgage to take advantage of lower interest rates. Refinancing is also used to transform equity into cash for vacations, home improvements, or for consolidating debt.
  • repayment period   In a home equity line of credit, that portion of the life of the loan that follows the draw period. During the repayment period, the borrower cannot take out any more money, but must pay down the loan.
  • secured debt   A debt that is secured by a lien on debtor's property that may be taken by the creditor in case of non-payment by the debtor. A common example is a mortgage loan.

More Related Terms and Acronyms

Search the Glossary

Mortgage Rates
When it comes to mortgages, low rates are king. Come check out our greatest mortgage rates and see how much you can save.
Mortgage Rates
 
Mortgage Payment Calculator
Find out exactly what you can afford to spend on your new home with our freshly redesigned and easy to use mortgage payment calculator, now with lump sum and pre-payment options, automatically generated graphs, and side-by-side mortgage comparisons.
Compare Mortgage Payments
 
Did you know? The average home loan in Deep River is: Discover many more facts and statistics exclusively here at Mortgage Super Brokers.
Ontario