Home Equity Line of Credit: A Flexible Tool for Your Property Projects

André Arcand

Mortgage Broker

Language(s):
French

Looking to renovate, purchase a second home, or manage unexpected expenses? Your property can become a valuable resource thanks to the home equity line of credit (HELOC).

This is a revolving credit product secured by the value of your home: borrow, repay, and borrow again up to your authorized limit. The approved amount can reach up to 65% of your property's market value. For instance, a home worth $500,000 may qualify for a HELOC of up to $325,000, depending on your financial situation and eligibility criteria. This credit is available as a standalone line or combined with a mortgage, depending on your profile.

Eligibility Requirements

Good credit score
Stable and sufficient income
Acceptable debt-to-income ratio
Passing a stress test to prove repayment capacity at higher interest rates

Advantages

Lower rates than credit cards or personal loans
Flexible repayments with no penalties
Option to consolidate higher-interest debts

Important Considerations

Financial discipline is key to avoiding over-indebtedness
Monthly interest payments are usually required
If transferring your mortgage, the entire HELOC may need to be repaid

Before taking out this type of credit, it is essential to plan its use and assess your ability to manage repayment. When used with discipline, a home equity line of credit remains a strategic financial tool!

TERMS	BANKS	MORTGAGE PLANNERS
1 Year Fixed	7.14%	4.89%
2 Years Fixed	6.69%	4.24%
3 Years Fixed	6.35%	4.04%
3 year closed Variable	6.35%	4.95%
4 Years Fixed	6.29%	4.04%
5 Years Fixed	6.34%	4.04%
5 years Variable	5.40%	4.20%
Refinance Fixed or variable	8.15%	4.19%
7 Years Fixed	6.69%	4.59%
10 Years Fixed	7.14%	5.04%
HELOC	5.95%	5.45%

TERMS

BANKS

MORTGAGE PLANNERS

1 Year Fixed

7.14%

4.89%

2 Years Fixed

6.69%

4.24%

3 Years Fixed

6.35%

4.04%