What is this HELOC

A HELOC (Home Owner Line of Credit), is just a fancy term for using the equity you’ve built up in your real estate investment for any thing you may need, kitchen reno, pool, or even a second property. This is a revolving line of credit where the lender uses your property as security. You can borrow money, pay it back and borrow again, up to maximum of the credit line. The equity in your home is determined like this, it is the difference between what you owe on the property and its market value. As you pay down your mortgage and the market goes up, your home equity power grows.

What makes a HELOC a powerful tool for you, the homeowner?

You only pay interest on what you use, and you get a favourable rate. So, if you have $100 000 line of credit and you take $5000 to buy some patio furniture, you only pay interest on the $5000 and you still have access to the remaining $95 000.

HELOC = Using your borrowing power – To pay for large expenses – at a low interest rate – when you need it!