HELOC Mortgage: Briefly Defined
A home equity line of credit, or HELOC mortgage, is a type of loan and most Canadian banks deliver it on revolving credit. HELOCs allows new and seasoned homeowners to borrow up to 65% of a home’s current value minus your mortgage’s outstanding balance. This amount is known as home equity. Home equity typically increases as you pay off your mortgage and your home value increases. You can get a HELOC on a fixed or variable rate. Some banks, such as TD, may allow you to combine your HELOC with your mortgage to borrow 80% of your home’s equity for a fixed term of time. To qualify for a HELOC, your outstanding mortgage balance plus the HELOC typically and usually cannot exceed 80% of your home’s overall value.