H.E.L.O.C. (Home Equity Line Of Credit)

• Renovating your home?
• Making a large purchase?
• Investing?
• Looking for a flexible way to manage your cashflow?

A Home Equity Line of Credit (HELOC) may be the right type of mortgage for you.

A Home Equity Line of Credit (HELOC) offers one of the best financing solutions for a variety of reasons:

1. Low Payments: Often only interest payments are required for a Home Equity Line of Credit (HELOC)
2. Low Interest Rates: Interest rates on a Home Equity Line of Credit (HELOC) are variable and tied to the Prime Rate, influenced by the Bank of Canada. The prime rate is the rate that financial institutions offer to their best customers. It fluctuates in relation to the changes in the overall economic conditions.
3. OPEN: You can pay the amount borrowed on a Home Equity Line of Credit (HELOC) in full at anytime without incurring a pre-payment penalty.
4. Readvanceable: You can access the funds at anytime and advances can be paid back and re-advanced as frequently as you like. The credit on the Home Equity Line of Credit (HELOC) is available to you as long as you own your home or condominium.
5. Higher Borrowing Limits: You can obtain a Home Equity Line of Credit (HELOC) for up to 80% of the appraised value of the property. It’s registered as either a first or second mortgage. In some cases, you can receive a hybrid of a fixed or variable rate mortgage with a built in line of credit.

With all these features, it’s easy to see why Home Equity Lines of Credit (HELOC’s) have become a popular means of financing when purchasing or refinancing a home or condominium.

Investment Opportunities

With ready access to the equity you have built up in your home, a Home Equity Line of Credit (HELOC) is also a great tool for investment purposes.

• Invest in income producing Real Estate
• Invest in Equities (Stocks or Bonds)
• Top up your RRSP’s
• Meltdown your RRSP’s
• Make your mortgage tax deductible (Smith Manouvre)

With a properly structured investment, the interest charged on a Home Equity Line of Credit can be tax deductible.

Home Improvements

The most common use for Home Equity Lines of Credit (HELOC’s) is for home improvements. The right upgrades to your home can ensure a higher resale value.

Kitchens, Bathrooms and Landscaping are the areas that could, if improved, provide the greatest contributions to the value of your home, according to a recent report by the Appraisal Institute of Canada (AIC).

Recent increases in real estate values over the past several years have allowed many Canadians to use a Home Equity Line of Credit (HELOC) to tap into the cash tied up in their homes.

Are you looking for financing for your next home renovation?

• Landscaping
• Kitchen
• Bathroom
• Basement
• Building an Addition
• Adding a Sunroom

Let the Home Equity Line of Credit (HELOC) experts here at Mortgage Alliance – Main Street Mortgages help you to arrange the right HELOC product to suit your needs.

For your FREE, NO OBLIGATIONS consultation, contact a Mortgage Professional with Mortgage Alliance – Main Street Mortgages, 1-877-226-4810.