Mortgage options
Flexible access to what you have already built.
A home equity line of credit lets you borrow against your home as you need it, pay interest only on what you use, and keep the rest available. Used well, it is the most flexible credit most homeowners will ever have.
HELOCs, readvanceable mortgages and second mortgages, explained
A HELOC is a revolving line of credit secured by your home. You can borrow, repay and borrow again up to your limit, with interest-only minimum payments at a variable rate tied to prime. The revolving portion is capped at 65% of your home's value, and your total borrowing against the home (mortgage plus HELOC) cannot exceed 80%.
Many lenders offer the HELOC as part of a readvanceable mortgage: as you pay down the mortgage, your available credit grows automatically. Investors and renovators like this structure because the money is there when they need it, without a new application each time.
If a HELOC does not fit, perhaps because you want a fixed payment, or your current lender will not add one, Tisha can look at a standalone HELOC with a different lender, a refinance, or a second mortgage. She will walk you through the costs, the rates and the flexibility of each, and recommend the one that fits how you actually plan to use the money.
"Equity is only useful if you can reach it on your terms. Structure matters more than the rate."
Who this is for
How homeowners use a HELOC
Renovations in stages
Draw as the contractor invoices, rather than borrowing a lump sum up front.
An emergency reserve
Credit that sits at zero until you need it, at a far lower rate than cards.
Investment down payments
Fund the next property from existing equity, then refinance when it makes sense.
Education and family support
Separate sub-accounts for each child make the borrowing easy to track.
Debt consolidation with discipline
Pay out high-interest debt, with a repayment plan Tisha helps you set.
Bridging a sale and purchase
Cover a short gap between closings without expensive bridge financing.
How it works
Setting up a HELOC
- 01
Equity and goals
How much you have, how you intend to use it, and whether revolving credit or a fixed loan fits better.
- 02
Structure
Add to your existing mortgage, a readvanceable product with a new lender, a standalone HELOC, or a second mortgage.
- 03
Approval
Income, credit and an appraisal. A HELOC is qualified at the stress test rate like a mortgage.
- 04
Access
Funds available by transfer or cheque, with a plan for how and when you pay it back.
What is the difference between a HELOC and a refinance?
A refinance gives you a lump sum with a fixed or variable rate and regular principal-and-interest payments. A HELOC is revolving: borrow and repay as you go, interest-only at a variable rate. Many homeowners end up with both: a mortgage for the long-term balance and a HELOC for flexibility.
How much can I borrow on a HELOC?
Up to 65% of your home's value on the revolving portion, provided your total borrowing against the home stays at or below 80%. On a $700,000 home with a $350,000 mortgage, that is up to $210,000 available.
Can I get a HELOC if my mortgage is with another lender?
Yes. A few lenders offer standalone HELOCs in second position, and a second mortgage is another route. Often the cleanest option is moving the mortgage to a readvanceable product at renewal, with no penalty.
Is HELOC interest tax deductible?
Only when the borrowed funds are used to earn income, such as a down payment on a rental property or investments. Keep borrowing for different purposes in separate sub-accounts and confirm the details with your accountant.
Related mortgage options
Free consultation
See how much equity you can access, and the smartest way to do it.
Tell Tisha what you are trying to do and she will come back with options, not a sales pitch. Free, no obligation, no credit check to start.
- Over 20 years in retail banking
- Former mortgage underwriter: she knows what lenders want
- Banks, credit unions, monoline and alternative lenders
- Lender-paid on most residential mortgages