Dave Butler
Great Brokers Company
License M2305768 (Level 2)
Office:123 Main Street, City, Province, Postal Code
Areas Served: Alberta, British Columbia, Manitoba, New Brunswick, Newfoundland and Labrador, Nova Scotia, Ontario, Prince Edward Island, Quebec, Saskatchewan, Northwest Territories, Nunavut, Yukon
BIO: Fiducias incredibiliter verecunde corrumperet Caesar.Pretosius appara.
Website: greatbroker.com
Home Equity Line Of Credit (HELOC)
Maximize Your Home’s Potential with a HELOC
A Home Equity Line of Credit (HELOC) is one of the most versatile financial tools available to homeowners. It allows you to tap into the equity you’ve built in your home, giving you access to funds when you need them, without altering your primary mortgage.
Unlike traditional loans, a HELOC provides a revolving line of credit, similar to a credit card. This means you can borrow and repay as needed, up to your approved limit. At Better Mortgages, our team of experts is here to help you navigate your options and unlock the full potential of your home’s equity.
As financial expert Suze Orman once said, “Owning a home is a keystone of wealth—both financial affluence and emotional security.” A HELOC allows you to leverage that wealth strategically, helping you meet your financial goals while maintaining stability.
What Makes a HELOC So Useful?
A HELOC is designed for flexibility and financial efficiency. Instead of being locked into a fixed amount, you can draw only what you need, when you need it. This can be an ideal solution for:
Home renovations
Education costs
Debt consolidation
Emergency funds
Investments
HELOCs charge interest only on the amount you’ve borrowed, not the total credit limit. This feature helps you manage costs and retain financial flexibility. If you’ve locked in a low mortgage rate, a HELOC lets you access funds without refinancing your primary mortgage, ensuring your rate remains intact. HELOCs typically offer variable interest rates tied to the Bank of Canada’s prime rate, which can be more competitive than many fixed-rate options. This allows for potential savings over time. Your home’s equity can be a substantial financial resource. A HELOC helps you leverage it efficiently, whether for phased home renovations, large purchases, or investment opportunities. HELOCs often offer interest-only payment periods, providing added flexibility and allowing you to better manage your cash flow.Key Benefits of a HELOC
Pay Only for What You Use
Keep Your Current Mortgage Rate
Competitive Interest Rates
Preserve Your Equity for Big Projects
Flexible Payment Options
How Much Can You Borrow?
The amount you can borrow with a HELOC depends on several factors, including your home’s current value and the equity you’ve built.
Major Banks
Typically allow borrowing up to 65% of the property’s market value, less the balance of your existing mortgage.
Alternative Lenders
May offer higher loan-to-value (LTV) ratios but often with higher interest rates and potential setup fees
Other factors influencing your borrowing limit include your credit score, debt-to-income ratio, and an up-to-date property appraisal.
What You Need to Qualify for a HELOC
Sufficient Equity
Most lenders require you to have at least 20%–35% equity in your home.
Strong Credit Score
Higher credit scores can help you secure better terms and lower rates.
Debt-to-Income Ratio (DTI)
Lenders assess your ability to manage additional debt, often looking for a DTI below 50%.
Property Appraisal
Lenders will usually require a current market value appraisal of your home.
Proof of Homeowners Insurance
Lenders need assurance that your property is protected.
HELOC vs. Home Equity Loan
A HELOC offers a flexible, revolving line of credit, ideal for expenses spread out over time. Payments are typically interest-only during the draw period.
A home equity loan, on the other hand, provides a lump sum upfront with fixed payments covering both principal and interest. It’s better suited for one-time expenses where the cost is known upfront.
Let Better Mortgages Help You Unlock Your Equity
At Better Mortgages, we know that every homeowner’s financial goals are unique. Our Mortgage Agents and Brokers will work with you to tailor a HELOC solution that fits your needs, ensuring you access your equity strategically and with the best possible terms.
Ready to take the next step? Choose a Better Mortgages representative to work with or contact us today to learn more about how a HELOC can support your financial goals.
Let’s unlock the full potential of your home’s equity together!