HOW DO I KNOW HOW MUCH I CAN GET FOR A HOME EQUITY LINE OF CREDIT?

Author: Boychuk Mortgage Group | Jul 02, 2024

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 given numbers and subject to qualifying, you may add an additional HELOC to your mortgage of $350,000.
(Your home value x 80% - your mortgage balance).

You now have the option to advance all or some of those funds, or you can leave the credit line untouched until needed.