Expert Advice

Home Equity Line of Credit Explained

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Is a Home Equity Line  of Credit  right for you?

As a homeowner, you’ve worked hard to pay down your mortgage, but the equity you’ve built in your home does not have to sit idle. A Home Equity Line of Credit (HELOC) can be a comfortable alternative to (or supplement to) a traditional mortgage. With rates linked to our TD Prime Rate1, a Home Equity Line of Credit allows you to simplify your borrowing by leveraging the equity you’ve built in your home. You can have access to funds, up to your available credit limit, 24 hours a day, seven days a week.


How does it work?  If you have an existing mortgage on your home, you can apply for a HELOC up to 80% of the appraised value.  For a stand-alone HELOC, the maximum is 65% of the appraised value.  To apply is simple.  A TD Mobile Mortgage Specialist would meet with you to take an application, review your income, assets, liabilities and credit score.  Assuming everything is in order, the application would be submitted for review.


It’s important to note that while the HELOC itself is linked to our TD Prime Rate1, you would need to qualify for the HELOC based on the current Bank of Canada rate. This provides an affordability “cushion” in the event of interest rate changes.  The HELOC, once approved, will be registered on title to  your home. You would then have access to the approved funds to use for whatever purpose you choose.  You can consolidate outstanding debts, including higher-interest credit cards, car loans or personal loans.  The HELOC can be used as a low-interest way to finance renovations, a vacation or any major purchases.  You can even use available funds as a down payment to purchase another property through your Re/Max Realtron agent!  The choice is yours.


The benefits of a HELOC are:

-a significantly lower interest rate than unsecured loans or credit cards

-the flexibility to pay interest-only payments

-a completely open revolving credit facility …you pay off as much as you wish at any time with no penalties

-more credit will become available as you pay off your HELOC balance

-the option to lock in all or a portion of the credit limit at first mortgage interest rates

Whether you are purchasing, refinancing or simply looking for a way to tap into the unused equity in your home, a TD Canada Trust Home Equity Line of Credit can give you the flexibility and control you need to make it happen.

Since all potential mortgage options should be considered within the context of your individual needs, we urge you to speak to a TD Mobile Mortgage Specialist.   Ask your Re/Max Realtron agent for a referral today!

1 Rate changes from time to time to reflect changes in TD Prime.

Norma Chrobak

Norma Chrobak
Regional Sales Manager
TD Canada Trust
416 806 3212