Mortgage Agent > Resources > Mortgages & Interest Rates > Home Equity Lines of Credit
By: Robert Clancy Mortgages & Interest Rates

Home Equity Secured Lines of Credit.

A Home Equity Line of Credit is a secured loan against your home just like a mortgage but with the features of a line of credit.  It is completely open (paid down at any time without penalty) and is also revolving (can be paid down and then used again.  The loan is always available until closed out.  A Secured Line of Credit can be added alongside a mortgage as s separate product.  For example if a client has equity in their home a lender will allow the client to borrow up to 80% of that equity when adding on a secured line of Credit.

This can be applied on the purchase or refinance of a home.

Secured Lines of Credit can be used to purchase another property.  Remember the equity in your home is yours so you can borrow against equity to use to purchase the property or as a down payment.  The secured line of credit can also be converted into a regular mortgage to pay down if loan if that is a preference.

For clients wanting to invest in investment properties a secured Line of Credit is a great product tool to have available.  No payment is made on the loan until it is used and if desired the payment can be kept to interest only.  So a client with equity in their property can set up a secured Line of Credit and use whenever they want too.  If they do not use it there is no cost.  In some cases the Secured Line of Credit is free to set up.

Some main feature of Secured Lines of Credit

  • If taken out alone the maximum loan amount is 65% of property value.
  • If taken out alongside a mortgage the total maximum loan amount is 80% of property value.
  • Product is complete open and revolving.
  • Interest only payments if desired.
  • No cost to the client if not used.  The client only pays on the amount in use at any time.
  • Ideal for clients with future plans to purchase an investment property or just to have around in case of emergency or for future use.
  • If set up alongside a mortgage, as the mortgage decrease the equity available is then added onto the line of credit.

For more information or to set up a Secured Line of Credit please contact

Robert Clancy, AMP,

Mortgage Agent

SAFEBRIDGE Financial Group

Tel:  416 899-1467

Email: robert@safebridgefinancial.com

www.bestratesmortgages.ca