Current Variable Rate
6.30%Current Prime Rate
6.95%
Terms | Bank Rates | Our Rates |
|---|---|---|
6 Months | 6.59% | 6.25% |
1 Year | 7.04% | 6.14% |
2 Year | 6.54% | 6.29% |
3 Year | 6.29% | 5.91% |
4 Years | 6.29% | 5.74% |
5 Years | 6.34% | 5.29% |
7 Years | 6.60% | 5.84% |
10 Years | 6.85% | 6.00% |
Home Equity Line of Credit(HELOC)
Home Equity Line of Credit(HELOC)
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With Home Equity Line of Credit (HELOCs), you can draw funds as needed for a certain amount of time. The main difference from Home Equity Loan is that it comes as a credit line and not a lump sum loan amount.
A home equity line of credit (HELOC), is a secured form of revolving credit. As with a home equity term loan, a HELOC will be secured by a mortgage registered on title to the home, meaning the lender can claim and sell the home if you default under the HELOC.
A HELOC is a form of revolving credit. Revolving credit allows you to borrow money whenever you need it up to a predefined credit limit. As long as you have credit available, you can continue to borrow against it. Currently, the credit limit for a HELOC with a federal financial institution can’t exceed 65% of the home’s lending value.
Home equity lines of credit typically come with a variable interest rate that is tied to the lender’s prime rate, which means your rate can fluctuate over time with interest rate changes. Your payments will vary based on how much money you currently owe on the line of credit and the applicable interest rate. You only pay interest on the amount of money that you use.
Pros of HELOC
- Flexibility – You can use a HELOC for almost anything including financing your children’s education, paying off a higher loan balance, or possibly even refinancing your first mortgage, depending on your credit limit.
- Interest – You only pay interest on the amount of money that you use.
- Easy access – The money is there and available whenever you need it. You don’t have to apply for a new loan each time you need money.
- Lower interest rate– You may pay lower interest than with an unsecured loan and potentially on a home equity loan depending on the priority of the mortgage securing it.
Cons of HELOC
- Variable interest rate – It could go up at any period of time depending on your lender’s prime interest rate, potentially causing your loan payments to rise.
- Easier to accumulate debt – Because the HELOC is so flexible in terms of how it can be used, it can be easy to accumulate debt if you are not careful about how you use it. Similar to a credit card, or personal loans, you need to use it carefully to make sure you aren’t facing too much debt.
- Loan default- If you default on your loan payments, your lender could potentially claim and sell your home.
Our Rates
Compare our rates to the banks and see why the HB Mortgage Centre is the wisest choice.
Please Note: Advertised rates are not guaranteed. The rate provided by any financial institution listed, or any approval or decline you receive, will be based solely on your personal situation. Rates may vary from Province to Province and are subject to change without notice. Posted rates may be high ratio and/or quick close which can differ from conventional rates. The advertised rates are provided as guidance only and the accuracy of these rates is not guaranteed. You are encouraged to speak with a HB Mortgage Centre Specialist for the most accurate information and to determine your eligibility. *O.A.C. & E.O.
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