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Home Equity Line of Credit (HELOC)
About the Credit Line
A home equity line of credit, or HELOC, is a revolving line of credit that uses your home's current market value as collateral. When you have 20% or more equity in your home, you can set up a line of credit that can be easily accessed and used for just about anything. It is fully open for prepayment without penalty and can be used for home renovations, investments, a vacation, a child's education, or debt consolidation. You can borrow as much as you need, up to your available credit limit, and for the first 5, 10 or 25 years, you can choose to pay as little as interest-only. Up to 65% of your home's value may be used. If the HELOC is combined with a regular mortgage the combined value of your HELOC and mortgage can be up to 80% of your home's value. As you pay off your mortgage you may be able to borrow more from your HELOC.
- Equity take-out — You can enjoy your money now, and not have to wait until you sell your home.
- Refinancing — You can refinance up to 80% LTV.
- Purchase a home — You can choose our Line of Credit Mortgage to finance a home purchase, instead of a conventional first mortgage.
- Owner-occupied only — Up to fourplex available.
- $10,000 to $500,000
Loan To Value (LTV)
- Up to 80% Canada-wide
Set-Up FeesAs a borrower, you are responsible for the:
- Appraisal fee (if applicable)
- Legal/closing fees
Loan Interest Rate
- Variable rate only, floats daily based on Bank of Canada Prime
- Monthly compounding
How You Could Access Your Funds
- To draw out money from your line of credit account simply call your lender. You can also request funds through online access or by using cheques from your account which are provided by the lender. Funds will be transferred within one to four business days, depending on the method of transfer.
- You will receive a detailed monthly statement within 10 business days after your payment date
- 5 year term (fully open, principal amount can be paid back in part or full at any time without notice or penalty)
- This Line of Credit Mortgage is not portable or transferable.
Repayment of Loans
- Line of Credit Mortgage loans have an interest-only period of 5 or 10 years, during which time you are only obligated to make interest payments on your outstanding balance. Upon completion of the interest-only period, the credit limit will convert to an amortizing credit limit. Depending on the outstanding Line of Credit balance, payment amounts may be adjusted to cover both principal and interest payments.
- At the end of the interest-only period, you can reapply to extend the interest-only period.
- The required interest only payment will automatically be deducted monthly from your bank account.