A home equity line of credit is simply the amount of equity that has been built on your home from your primary mortgage. To simply put, it’s a secured form of credit that you can use for home renovations or if you are in need of urgent cash. It usually has a much lower interest rate than a traditional line of credit and in Canada, it cannot go over 65% of your home’s value.
You may ask what is the advantage of a HOLEC? Well, it’s a revolving credit – which means you can borrow this money, pay it back and borrow it again if you need. Get in touch with the mortgage experts at Mortgage Power Canada to know more about the home equity line of credit in Brampton.
There are basically two types of home equity line of credit you can get – HOLEC combined with a mortgage and a stand-alone one. Let’s get into understanding each of them in detail: