What is A HELOC?
A Home Equity Line of Credit (HELOC) is a line of credit which is attached to your property. The difference between what you owe on your property and the market value of your property, represents the “equity” in that property. And if you have equity, then a HELOC provides you with easy and timely access to this equity.
Features of this product:
Similar to a variable rate in which the cost of this product is linked to the prime lending rate. So keep an eye on the prime rate, as your interest rate will fluctuate along with it.
A HELOC is a versatile product as it permits you to tap into your equity at will. You can withdraw up to your limit, and you can pay it back in full without having to worry about pre-payment limits that are typically seen on conventional mortgages.
Due to its flexibility and convenience, rates on a HELOC are typically higher than those of a conventional mortgage. Having said that, if you bring your balance to $0, then just like a credit card – you have no payments to make.
Who would benefit from the product?
If you are a contractor or self-employed, this product would be helpful! If you are someone thinking of purchasing a property, or looking at renovating your property, or making some sort of purchase in the medium to long term than this product is also for you! Set it up, so that it’s there waiting for you when you need it. Once setup, there are no payments to be made until you use it!
Call us today, we’ll let you know if this is the right product for you!