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Everything about a Home equity line of credit you need to know

If you are the proud owner of a property, you should know about equity. But did you know that you can use that equity to get access to extra funds? That’s what a home equity line of credit is all about. You would be putting a certain percentage of equity as collateral and in return have access to a credit line similar to a credit card which you can withdraw from at any time. Another benefit that you should know that the interest rates are very low compared to other sources of loan. So if you want to apply now, get in touch with our team at ABC Mortgages in Toronto. We look forward to hearing from you.

The more the equity the more you get

It’s exactly how it works. If you have ownership for a good percentage of equity, you can use it to secure a lump sum of amount cash in credit which you can use for anything; be it for repairs or for going for a holiday- the choice is yours. However, you should know that you cannot use all of your equity for a home equity line of credit loan. In Toronto, Canada, you can access up to 65% of the value of your home through a HELOC loan. However, you should remember that your outstanding mortgage loan balance + your HELOC cannot equal more than 80% of the value of your home.

How does a home equity line of credit account work?

Coming back to this policy, another major benefit of opening a home equity line of credit line is that it is a revolving credit. What that means is, it works like a credit card. The same way a traditional line of credit works, you will only need to pay the interest on your outstanding balance, and that amount is automatically taken out of your bank account on the same day each month. If you’re worried about falling back on payments, then you would be glad to
know that there is no hard and fast rule on paying the entire amount at a given date, you can pay back the minimum amount and then slowly repay the complete debt.

The major features of a home equity line of credit in Toronto, Ontario

There are several distinguishing features of a home equity line of credit account, have a look:

If you need emergency funds then you can withdraw them from your home equity line of credit account

It is more affordable than an unsecured line of credit

You can make your mortgage tax-deductible

If you have too many debts you can consolidate them and payback using your HELOC account funds

If you fail to pay before the due date, you will not have to bear any penalties

Still not impressed? Well, you can always speak with our team members at ABC Mortgages to resolve any queries you may have. We are always transparent with all the detail with our customers so you know how the overall process is going through. Based in Toronto we serve domestic customers across the region, call us!

FAQs:

Q: What’s the Difference Between a HELOC and a Home Equity Loan?

Still not impressed? Well, you can always speak with our team members at ABC Mortgages to resolve any queries you may have. We are always transparent with all the detail with our customers so you know how the overall process is going through. Based in Toronto we serve domestic customers across the region, call us!

Q: Why should I choose ABC mortgages?

A: When you work with ABC Mortgages you will be dealing with a team of professionals
who will ensure that all your loan requirements are met. Also, our interest rate for HELOC is a low 3%. For more details, call us.

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