Using your property as collateral for a line of credit is a great option for home improvement and other major purchases. Home equity lines of credit are either combined with a mortgage or offered as a stand-alone product.
Using HELOC can be a great advantage for borrowers who need access to funds but don’t want to go through the process of applying for a new loan every time they need money.
A home equity line of credit combines a revolving home equity line of credit and a fixed-term mortgage. The maximum credit limit for a home equity line of credit combined with a mortgage is 65% of your home's purchase price or market value.
A stand-alone home equity line of credit is a revolving credit product that is secured by the equity in your home and can be used as a substitute for a mortgage.
A home equity line of credit can offer increased flexibility when compared to a more traditional mortgage. With a home equity line of credit, the borrower has the ability to choose when and how much they borrow, within the limits of the credit line.
If you're interested in learning more about home equity lines of credit, or if you're ready to apply for one, we'd be happy to help. Contact us today to learn more about home equity lines of credit and how we can help you get the most out of your home.
A home equity line of credit, or HELOC, is a lending product available in Canada that allows homeowners to access the equity in their homes. Homeowners can use a HELOC for a variety of purposes, including home renovations, debt consolidation, and investing.
The maximum credit limit for a home equity line of credit combined with a mortgage is 65% of your home's purchase price or market value.
A HELOC can have a direct impact on your credit score because it is reported as a revolving line of credit, similar to a credit card. Your credit utilization, or the amount of credit you're using in relation to your credit limit, is a major factor in your credit score. So, it's important to keep your balance low and make payments on time to avoid damaging your credit score.