Home Equity Line of Credit (HELOC)

Mortgages
Written By David Pipe

Home Equity Line of Credit (HELOC) is a type of loan that allows homeowners to borrow against the equity they’ve built in their home. It functions like a revolving line of credit, similar to a credit card, where the borrower can draw funds as needed up to a pre-approved limit. The equity in the home acts as collateral for the loan

 

Key features of a HELOC:

  • Variable interest rates: HELOCs often have adjustable interest rates that can fluctuate over time.

  • Draw period: During this phase, you can borrow from the line of credit and only pay interest on the amount used.

  • Repayment period: After the draw period, you must repay the borrowed amount, typically over a set period.

 

Homeowners often use HELOCs for renovations, debt consolidation, or other major expenses.

To see which lenders offer HELOC products, read our Lender Reviews.

 

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David Pipe

David Pipe helps business owners, investors, and first-time homebuyers build and protect family wealth with creative financing and tax-efficient life insurance solutions. He is an award-winning mortgage agent and life insurance agent in Ontario. David believes education in personal finance and seeking great advice is the best way to reach our financial goals, and he is focused on sharing his knowledge with others. He lives in Guelph, Ontario with his wife Kate Pipe and their triplets (and english bulldog Myrtle).

https://www.wealthtrack.ca/about#about-david-pipe
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