With a home equity line of credit, or HELOC, you’ll finally be in the equity in your home to work. But if you were to find the lowest HELOC rates, fantastic and easy access to your credit line, and the flexibility that suits your life you’re going to need one of our Toronto mortgage brokers help you! Here were going to talk about how HELOCs work, the benefits and pitfalls, and everything else you need to know if this is the right decision for you. You want to make sure you’re getting the lowest rate possible – the lower the interest the less you have to pay!
How does a home equity line of credit work?
Instead of you having to worry about things like dealing with a large lump sum or planning far ahead, a HELOC works a little different. Open one for a rainy day and use it when you need it with the flexibility and easy access options you need. Open one right now and fund your retirement, start a business, pay your kids’ Uni tuition. Unlike a second mortgage or home equity loan, you borrow just what you need and pay it back when you use it, and borrow it again if you need to. If you never use it, you don’t have to worry about paying it back – it’s just that easy.
Who is eligible for a home equity line of credit?
If you have equity in your home, you’re eligible for a HELOC. The more equity you have the better the deal you’re going to get – but you’re also going to want to have good credit, a good job and proof to back it up. The lender needs to know that you’re going to be able to pay back this loan; if you don’t have good credit or a good income, you may still qualify for a HELOC – but you may have to pay more in less favourable terms and interest rate penalties.
Can I pay off my home equity line of credit early?
This depends on the lender you’re working with. When you choose us as your Toronto mortgage broker we’ll help you through the process. From figuring out whether you should go with Lender A that offers a great rate but a penalty if you pay early, or Lender B which offers the ability to pay it off early with a slightly higher interest rate, you might want to take Lender B.
Get the best rate with us
If you want to get the best rate on your next HELOC, you’ll want to work with us! As Canada mortgage brokers we can help you figure out how much you can save – you might even be surprised at how much it could be! If you’ve already worked with your current lender to find a HELOC, we can help you find a better rate – so give us a call today!
Also, visit our home equity line of credit page today to learn more!