A home equity line of credit is available to you if you have more equity in your home than your original down payment. By using your home as equity you may be able to get cheaper financing with more flexibility.

The most money that you can receive through a line of credit is 90% of the appraised value of your home, however this then becomes a 2nd mortgage on your home. A secured line of credit can be obtained up to 75% of the appraised value.

Just because you have a line of credit does not mean that you have to use it. It can be considered as security in case a sudden shortfall in funds occurs. You can withdraw the money whenever you need to and can repay it either in one lump sum payment or in parts. Lenders usually do not require that payments are made on the principal, but will always require monthly interest payments be made. The interest rate on the home equity lines of credit are usually at a rate at or above prime.

You can also use your line of credit in whatever manner you want. Remember, with any investments that you make using your line of credit, the interest on the monies borrowed for the investment are tax deductible against your income earned.

There are also fees that come with getting a home equity line of credit – appraisal fees, legal fees, disbursement fees, GST and so forth. We can help you to find the lowest cost fees out there.