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.
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 helped my wife and I buy our first place and thanks to him, the whole process went very smoothly. We had no idea what we were doing and Jeff helped us every step of the way. He was very patient with all of our questions and gave us very good explanations to the parts of a mortgage that were confusing to us.
We could tell that Jeff worked very hard for us and we absolutely recommend him with the highest regards.
Jeff helped me buy my first property and was very knowledgeable about all the questions I had Thanks!
Thank you Jeff for your hard work. We are very thankful.
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