If you don’t know what the term HELOC means, then you’re probably just coming out of your annual winter hibernation. H.E.L.O.C.s, also known as Home Equity Lines of Credit
are one of the fastest growing segments of the mortgage industry.
Its not hard to understand why.
An article in the Montreal Gazette recently investigated the benefits of home
equity credit lines, as well as a few concerns. On March 18th, among other things, the Canadian Government recently tightened the mortgage regulations on HELOCs — now available to a maximum of 80% of the property value. At least, through banks.
When working with a broker, you can access many alternative sources of financing to fit your particular situation.
Aside from debt consolidation, & home renovations, a major reason Canadians today use a Home Equity Line of Credit is in order to access their home equity while they are waiting for their pesky fixed rate mortgage terms to come due.
That’s
right, if you’re still stuck at 5% or 6% while all of your friends and
neighbors have flipped over to attractive variable mortgages … a line
of credit behind your existing mortgage might just be that lifeline you
need until the current term expires!
