What is a Home Equity Line of Credit (HELOC)?

A HELOC is a flexible second mortgage that lets you borrow against your home’s equity—similar to how a credit card works. You’re approved for a set limit and can withdraw funds as needed, paying interest only on what you use.

You have the option to make interest-only payments or repay both the principal and interest without penalty. HELOCs typically offer a variable interest rate based on your bank’s prime rate and allow borrowing up to 65% of your home’s value.

With easy access to funds and flexible repayment terms, a HELOC can be a smart financial tool for homeowners needing extra liquidity.

How Does a Home Equity Line of Credit (HELOC) Work?

A HELOC lets you leverage the equity in your Calgary home with flexible access to funds. Here’s a breakdown of how it works:

Property Evaluation: We determine your home’s current market value to calculate your available equity.

Setting the Limit: Your credit limit is based on your equity and other qualifying criteria.

Accessing Funds: Use your HELOC through online transfers, checks, or a dedicated credit card—whenever you need it.

Flexible Repayment: Choose interest-only payments or pay down the principal, depending on what works best for your financial goals.

Why Choose Us for Your Home Equity Line of Credit (HELOC)?

Flexible Access: Use your available equity whenever you need it—for renovations, debt consolidation, or big-ticket expenses.

Expert Advice: Our Calgary-based mortgage specialists walk you through every step, so you understand how a HELOC works and how to use it wisely.

Personalized Solutions: We tailor your HELOC to suit your financial goals, offering options that align with your unique situation.

Competitive Rates: Enjoy great interest rates that help you make the most of your home equity while keeping costs low.

HELOC Eligibility Requirements

To qualify for a Home Equity Line of Credit (HELOC) in Calgary, you generally need to meet the following criteria:

Minimum Credit Score: A good credit score, typically higher than what is required for a traditional mortgage, demonstrates your creditworthiness and responsible financial management.

Sufficient Equity in Your Property: HELOCs are based on the equity in your home, which is the difference between the market value and the mortgage balance. Lenders usually require 20% to 25% equity in the property’s appraised value.

Proof of Income and Financial Stability: Lenders will review your income and financial stability through documents like pay stubs, tax returns, and financial statements, looking for a consistent income source and sound financial management.

For personalized assistance with your eligibility, contact our experienced broker today!