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HELOC and lines of credit · British Columbia
HELOC: flexible access to your home equity
A home equity line of credit lets you borrow against your home when you need it and pay interest only on what you use.
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How it works
What is a HELOC?
A HELOC is a revolving line of credit secured by your home, like a credit card with a much lower rate. You can borrow, repay and borrow again. Payments can be interest-only, and the rate is usually variable, tied to prime.
How much
How much you can access
Your mortgage plus the HELOC can usually total up to 80% of your home's value, and the line of credit part alone up to 65%. You still need to qualify on income and credit.
Good uses
When a HELOC makes sense
- Renovations paid in stages.
- An emergency fund you hope not to use.
- A down payment on a rental or investment.
- Paying off higher-interest debt, with a plan to pay the line down.
Interest-only payments are easy to live with, so set a repayment plan. If you need a lump sum, a refinance may cost less.
Questions
Frequently asked questions
Is a HELOC rate fixed or variable?
Almost always variable, so your interest cost changes when prime changes.
Can I add a HELOC to my current mortgage?
Sometimes with your current lender. Otherwise it is set up when you switch or refinance. I will check which is cheaper.
Is there a cost to set one up?
There can be legal and appraisal costs, and some lenders cover them. I will tell you upfront.
Want access to your equity?
Let's see how much you could access and what it would cost. Service in English, Punjabi and Hindi.