Multi-Product HELOC Mortgages

Posted Wednesday March 19, 2014 by Jeff Evans

Line of Credit
By: Simon Cunningham

What are HELOC mortgages?

HELOC mortgages are a type of line of credit that is secured by a mortgage against your home. They are based on a variable rate, which fluctuates with the prime rate of the Bank of Canada, and the interest rate is typically higher than a variable rate mortgage. However, you don’t have to choose between them.

Multi-Product HELOC Mortgages

We have lenders who will give you the benefits of both. If you need to borrow money for the longer term, you can get a fixed or variable rate mortgage (or both at the same time!) and then for your short-term needs, we can add a HELOC to your mortgage. As you pay down fixed or variable rate mortgage, our lenders will typically add the amount of the mortgage you have paid off to your available HELOC balance.

The great thing about this is normally mortgage borrowers make a payment and then cannot ever get money back from the bank via a loan if they need the money for something. However, with a HELOC mortgage, you can!

Mortgages like a HELOC mortgage are a fairly specialized product and have certain rules, restrictions and limits. I always like to sit and discuss with clients considering HELOC mortgages to determine their requirements. Some people have been encouraged to get a large HELOC from mortgage agents at the bank but often it does not make sense as the cost savings to a variable rate are typically substantial. However, it is an individual matter and a financial review will be able to determine your suitability for this product.

As a mortgage broker, I have a wide variety of lenders and products to help you, including HELOC mortgages. Contact me today and we can work on a plan that fits your needs.

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Jeff Evans

President/Mortgage Broker

Canada Innovative Financial 200 - 2851 Simpson Rd. Richmond, BC V6X 2R2 Canada
2125-88 W. Pender St. Vancouver, BC V6B 6N9

Ann Evans

Vice-President/Mortgage Broker

2125-88 W. Pender St. Vancouver, BC V6B 6N9

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