What is a home equity line of credit?

A home equity line of credit (HELOC) is an "open" mortgage product that has a variable interest rate.  When and if you need to access equity in your home, a HELOC is a great tool that saves you money and ensures you pay minimal interest especially when compared to unsecured loans and credit cards. For example, if you need to use your home's equity to invest in another property or as a form of down payment or even to pay for your child's education OR if you need to perform renovations in your home, a HELOC is a great way to access additional funds at a lower rate.
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How much of a HELOC can you obtain and How to Obtain an Home Equity Line of Credit. 

Most lenders that offer a home equity line of credit can offer you up to 80% of your property's value. The value of your home will be determined by an appraisal.  Provided that you qualify using the current qualifying criteria set in place today, a line of credit will will be registered against your property.  An advantage of a home equity line of credit is it does not mature, and you can pay it off in part or in full without having to pay a pre-payment penalty. 

Advantages of a Home Equity Line of Credit?
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A major advantage of having a HELOC is that it is an open credit product. Meaning, you don't have to pay a penalty if you decide to pay it off early. You can also pay more than the minimum monthly required payment to pay down principal faster at no extra cost or penalty. It also doesn't mature like a closed mortgage does. This means it will be available for as long as you have it registered on your property.

A home equity line of credit can be a excellent solution for borrowers who need to access equity in their homes at a low cost.

What is the interest rate on a Home Equity Line of Credit?

Interest rates do vary, however, they are usually variable rates which means they may fluctuate. The standard rate is Prime Rate (currently 3.95%) plus .10-.50% depending on lender. 

Please call our office to find out more at (647) 773-4849. 

Home Equity Line of Credit Lenders

Benefits of the Scotia Total Equity® Plan
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• Secured borrowing rates. Apply just once to secure your overall borrowing limit†
• Mortgages: Borrow up to 80% of the value of your home and manage your interest rate risk by splitting your mortgage into 2 or 3 different types of mortgages and terms. Both fixed and variable interest rates are available
• Other products: Borrow up to a total of 65% of the value of your home and choose lines of credit or other secured Scotiabank borrowing products†† that best suit your needs
• ScotiaLine® Personal Line of Credit - Low rates with payment options available
• Scotia Mortgage Protection can help make sure the home you worked so hard for is protected

Use your Scotia Total Equity® Plan to help you with all your borrowing needs.You can borrow up to 80% of the value of your home and choose from a broad range of Scotiabank products. Once the STEP is in place, you decide how and when you'll use your available credit. 

1. Secure your borrowing with at least 20% equity in your home.
2. Apply just once to establish your overall borrowing limit.
3. Manage your interest rate risk by splitting your mortgage into two or three different types of mortgages and terms.
4. Choose a combination of other secured Scotiabank borrowing products† that best suit your needs, up to a total of 65% of the value of your home.

 

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When you have a major expense, it’s good to know you have access to money to pay for it. Once you’ve set it up, a line of credit is always available. Borrow up to your limit at a competitive interest rate to buy a new sofa or major appliance, repair a furnace or roof, or pay off your credit card balances and other higher interest rate loans.

MANULIFE lets you:

• Access your money and manage your account 24/7
• Make interest-only or interest-plus-principal payments
• Pay back lump sums whenever you want
  
  

• The Equityline Visa credit card is best suited for homeowners looking to secure credit of between $10,000 and $100,000 and who have bruised credit or don’t qualify conventionally.
• Rates between 5.99% and 11.99% depending on real estate collateral and borrower's credit
• Low monthly payments
• Earn 1% CashBack every time you make a purchase‡
• Great for home improvement, debt consolidation, business financing and more