Mortgage Resources

Home Equity Line of Credit

A home equity line of credit (Heloc – pronounced Hee Lock) gives you access to the equity in your home at your own discretion. You are responsible for interest only payments each month on the outstanding balance that you use.

In many cases, Helocs are used for investments purposes but a Heloc can also be used for consolidating debt, renovating a home or for access to large amounts of pre-approved emergency funds. Actually, you can do whatever you want with a Heloc – it’s one large revolving line of credit…  One word of caution: it’s very easy to over borrow using your Heloc. Sound investment and borrowing decisions should be made prior to taking money out of your Heloc with planned repayment being a top priorities.

Some notes on Helocs

  • Not every lender has a HELOC product available
  • Interest is variable and tied to the bank’s prime interest rate
  • Since 2012, a Heloc’s maximum value cannot exceed 65% of the value of your home.
  • Helocs are registered on a home as a collateral mortgage (explained in the Readvanceable Mortgage section)
  • Can be included with a Readvanceable Mortgage


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