Ontario's HELOC
Experts.

Home Equity Line of Credits (HELOCs) allow homeowners to borrow against their equity. The lender will set a credit limit for you based on your equity when you apply for a HELOC. You can then borrow however much you want, similar to how credit cards work. You pay interest only on the amount that you use. And you can borrow as long as your credit limit is not exceeded.

HELOCs offer greater flexibility than home equity loans, which require fixed monthly payments and a lump-sum upfront. They are also typically less expensive, so they can be a better option for most borrowers.

You'll need enough equity in your house to qualify for a HELOC. You will be required to retain between 10% and 20% equity in your home even after you receive the HELOC. Other requirements include a stable job, good credit, and proofs of income. Be aware that eligibility requirements can vary. Some lenders may be more flexible.

A HELOC is a better option than a home equity loan if you expect to incur multiple large expenses in the coming years. Revolving lines of credit are a good option for you if you have ongoing or recurring expenses. If you are paying for college tuition you could use a HELOC for the first semester fees. You can then make payments over time and borrow again for the next term.

Subtract your mortgage balance from the market value of your home to find your equity. You can then apply for a Home Equity loan with Homebase Mortgages and receive approval within a few short days.

Mortgage Central Nationwide makes it easy to apply for a Home Equity Line of Credit. You can fill out our online form, call us during business hours or contact us through Facebook or Twitter. Our mortgage experts will be happy to help you with any questions that you might have.

Home Equity Line of Credits (HELOCs) are different from second mortgages. A second mortgage is a lump-sum payment that's paid back in installments, much like a conventional mortgage. However, a HELOC functions more like a regular credit card. You can use it to draw money as you need, within a certain timeframe and up to a specified limit. HELOC payments usually only include interest during the first draw period. This gives you more flexibility to manage your finances.

With a HELOC, borrowers are approved for a specific credit limit, which they can access all at once or draw from gradually, as needed. This limit is determined by several factors, including the homeowner’s available equity, credit score, income, financial history, existing debts, and overall ability to repay.

HELOCs generally include a draw period—when funds can be borrowed—followed by a repayment phase. In some cases, borrowers may have the option to renew the line of credit. However, renewal terms vary by lender; some may require full repayment before renewal, while others may allow for immediate renewal once the draw period ends.

A HELOC is a good option if you want to use your home equity. But it's crucial to know the costs. A HELOC is no different from any other loan. It has both benefits and risks. You must carefully consider whether your circumstances allow you to weigh the risks against the benefits. Remember that your home is collateral and failure to pay could lead to you losing your property.