Did you know that you can use the available value in your home to borrow money?
A Home Equity Line of Credit can be a very valuable financing tool.
Interested to learn more?
We have put together some frequently asked Questions & Answers.
Q: What is a Home Equity Line of Credit (HELOC)?
A: A HELOC is a revolving line of credit. It is registered as a mortgage that homeowners can borrow from if they have sufficient equity available in their home. HELOCs are like a personal line of credit but usually with a higher limit at a lower interest rate.
Q: How does a HELOC work?
A: A HELOC is connected to your UECU chequing account. You only pay interest on the outstanding balance but have access to a pre-approved amount if you need it. As you pay down the principal, the funds become available to you again.
Q: What if I already have a mortgage on my home?
A: A HELOC can be registered as a second mortgage on your home if you have available equity. Those with no conventional first mortgage can also get a HELOC.
Q: How much can I borrow?
A: You can borrow up to 80% of the value of your home. This 80% includes all mortgages on your home. An appraisal may be required to determine the current value.
Q: What can I use this for?
A: Your HELOC can be used however you like – Renovations, investments, consolidation or emergency fund for example.
Q: What will my repayments and term be?
A: Your minimum monthly repayment is interest only. We recommend you pay more when you can. HELOCs are fully open so can be cleared at any time with no penalties. Once you apply for a HELOC you have access the funds as long as you needed and you own your home.
Q: I have some credit cards & high interest loans, can I consolidate this?
A: Yes you can. The interest payable on your HELOC will be much lower than your typical credit card at 20%. You should ensure you make principal payments to improve your financial position rather than holding on to the debt, the idea being that you use the break in interest to reduce your debts.
Q: How do I apply?
A: You can apply online, by phone or in branch.
Online: Click here.
Telephone: 416 461 9257 ext 25 or 29
Terms & Conditions apply.
Members must qualify for the loan based on UECU’s lending criteria.