If you own or have substantial equity in your home, your investment could mean you are eligible
for a home equity line of credit, also known as a HELOC. With this powerful financial tool, you
can create freedom and flexibility to master your finances and mortgage.
What is a HELOC?
A HELOC offers you a line of credit based on the available amount of equity in your home.
Similar to other lines of credit, you can borrow from this amount of money for renovations, make
a large purchase, or help you get ahead in other areas of your finances. While different
mortgage financing options are available, a HELOC is a flexible option that can provide financial
assistance in many situations.
What Is the Difference Between a HELOC and a Loan?
While a loan allows you to borrow a sum of money one time only, a HELOC gives you a sum of
money you can borrow from again and again. With a loan, you pay interest on the total amount
of money you have available to you. With a HELOC, you only pay interest on the sum that
you’ve borrowed. You can go ahead and withdraw money to pay off another bill, then pay back
the money borrowed and repeat the cycle. As long as you meet the conditions laid out in the
initial borrowing agreement, your funds will be available to support your needs. It is important to
note that the amount you withdraw from your HELOC does take away from your total equity until
you repay it.
Finding the Right Mortgage Broker in Edmonton, Alberta
If you currently have a mortgage and have significant equity, you might be eligible for a HELOC.
The right mortgage broker can help you incorporate a HELOC into an effective financial plan by
sitting down with you to understand your unique situation. Contact me to find out how I’ve
helped others unlock the power of their home equity!