The main advantage to your home equity line of credit is ongoing access you have to your equity at a low cost of borrowing. Rates are typically set at prime to prime + 0.50% Because your home equity is secured against your largest asset - your home, you will be able to borrow significantly more than a standard line of credit would allow. You can access your home equity line of credit for the purpose of additional investments such as purchasing a rental property. The monthly interest that you are charge when advancing funds from your HELOC for the purpose of any investment is…

Some of the more common reasons Canadians love their HELOC is their ability to complete home renovations, pay off high interest debt with low interest debt, and most importantly, have the ability to invest in assets that help create long term generational wealth Many borrowers also prioritize having the means of an emergency fund if ever needed. With a HELOC’s exceptionally low interest rate, you can borrow against your home without going further into debt on your credit cards or lines of credit each month.

A home equity line of credit is combined with a mortgage as a secondary source of funds should you need them in your future. With any HELOC product, you will need a minimum down payment of 20%, maxing out at a total HELOC value of 65% of your homes current value. Let’s look at an example: Let’s assume your lender offers a combined loan to value of 80%, meaning the combination of your total mortgage and HELOC option is 80% of your homes current value. Your appraised home valuation comes in at $1,000,000, and your current mortgage balance is $450,000. Based on the…

Subject to income qualifying, we recommend adding a HELOC to your mortgage as there are only advantages to you. It’s important to note that this HELOC option does not penalize you for funds you leave untouched and does not have any reverse affect to your credit. Without an added HELOC, if you require access to your equity, you will need to reconstruct your mortgage, resulting in lender penalties & legal fees. A home equity line of credit (HELOC) is a convenient and inexpensive means to borrowing money using your home’s current value as collateral. Because of the collateral backed loan, the interest…

A HELOC is a revolving line of credit secured against your home equity. It allows you to borrow funds up to a specified credit limit and repay them over time with interest.

HELOC funds can be used for various purposes, including home renovations, debt consolidation, education expenses, investments, and emergency funds.

A HELOC is a revolving line of credit, while a home equity loan provides a lump sum payment with fixed monthly payments. HELOCs offer flexibility in borrowing and repayment.

Using a HELOC for renovations allows you to access funds as needed and potentially increase your home's value. The interest paid on HELOC funds used for home improvements may be tax-deductible.

Qualification criteria typically include sufficient home equity, a good credit score, stable income, and meeting specific lender requirements. Boychuk Mortgage Group can assess your eligibility and guide you through the qualification process.

Sometimes, the interest paid on a HELOC used for home improvements may be tax-deductible. Consult with a tax advisor to understand if you qualify for this tax benefit based on your circumstances. Today, explore the benefits of a Home Equity Line of Credit (HELOC) with Boychuk Mortgage Group. Contact us to learn more about how a HELOC can help you achieve your financial goals while effectively leveraging your home's equity.