Home Equity Line of Credit
One of the most valuable assets for any individual is their property. Most property owners use a Home Equity Line of Credit (HELOC) to fund things like their children’s post-secondary education, home renovation, or any other kind of financial investment. Kingsdale Mortgage Centre allows borrowers to access up to 80% of the built-up equity in their house through a HELOC. It is a line of credit that is secured by the borrower’s property. The credit can be used to even consolidate high-interest debts on other loans.
At Kingsdale Mortgage Centre, you can count on our team to provide the best Home Equity Loan of Credit solutions. The interest rates on the HELOC are low and may even be tax deductible. Unlike a conventional loan, credit in a HELOC is revolving. You can borrow and repay it, and borrow it again up to a maximum credit limit. To find out more information, please speak to our team today.
When should you consider getting a HELOC?
A HELOC can be used to make various purchases. Below mentioned are some of the reasons to apply for a Home Equity Line of Credit (HELOC):
✔ House renovations
✔ Purchase of a new vehicle
✔ Debt Consolidation
✔ Various investment opportunities
✔ Pay off your medical expenses
✔ Fund your education expenses
How do the payments work?
The HELOC process allows funds to be available through a revolving line of credit. For the balance to be paid off, interest payments, including principal payments need to be made each month.
How to use a HELOC to make mortgage payments
When considering a HELOC, it is imperative for you to know that you have the choice to pay off your mortgage with a HELOC. You can ask the bank to convert your mortgage loan into a HELOC. Additionally, you will need to keep in mind that when using a HELOC to pay off your mortgage, you will be more than likely paying more interest than what you would normally pay for a regular mortgage. So, you have to ask yourself if this is the right choice. A significant benefit of using a HELOC to pay off a mortgage is that your scheduled monthly repayments will have a low-interest rate.
Regular payments will require the borrower to make principal payments as well, which are usually higher. Paying off your mortgage with a HELOC makes your loan payment flexible, at the same time, it can take longer to pay off the entire amount completely. Furthermore, using a HELOC to pay off your mortgage will increase if the interest rate increases in the long run. It is not the case for a fixed mortgage.
Book an appointment with Kingsdale Mortgage Centre today
If you are looking to apply for a Home Equity Line of Credit (HELOC), you cannot go wrong with Kingsdale Mortgage Centre. To book an appointment or to find out more information, please do not hesitate to reach out to our team today. We will be more than happy to address your queries.