Main Street Mortgages
The Home Equity Line of Credit (HELOC) is an inexpensive borrowing option that allows you to leverage the equity you’ve built up in your home. This credit line permits you to borrow up to 65% of your home’s value, with the option to access an additional 15% through a mortgage if needed. Unlike a traditional mortgage, the amount you pay down on your balance is immediately accessible through bank withdrawal, transfer, or check. With its affordable interest rate, this option provides quick access to your equity when required and can be useful for various purposes, including renovating your home, funding a dream vacation, or consolidating debt during challenging times.
A HELOC can be in the first or second position on your property title, and your first mortgage lender must approve a HELOC in second place if you are not refinancing and placing your first mortgage and HELOC with the same lender. The HELOC can also be combined with your first mortgage as an “All-In-One,” allowing you to have a fixed or variable mortgage portion with a set term and a HELOC. As you pay down your mortgage balance, the credit limit of your HELOC increases, providing you with more funds.
HELOC offers flexible payment options that allow you to pay as little as interest-only, pay a portion of the balance, or pay off the entire balance at your convenience, without incurring any penalties. The interest rate on home equity loans is variable, meaning it fluctuates with the prime rate.
Overall, a HELOC can be a valuable tool for homeowners with equity in their home who want the flexibility of immediate access to their equity. If you’re interested in discussing whether a HELOC is appropriate for your situation, please contact us to speak with one of our associates.
Mortgage Alliance – Main Street Mortgages is an Independently Owned and Operated Franchise of The Mortgage Alliance Network operating under Ontario license number 12914. Administrator license number 13319
