Home Equity Line of Credit Toronto | Approved Mortgage Brokers

Home Equity Line of Credit Toronto
HELOC is easier to access compared to other types of credit and is cheaper than unsecured and credit card loans. You can pay the money back at any time without a repayment penalty.
The applicable interest rate is the higher of either the Bank of Canada’s conventional 5-year mortgage rate or the interest rate negotiated with the lender + 2%.
Home Equity Line of Credit Toronto
The law does not allow you to access more than 80% of your home equity, meaning, in our example, you would only have access to $80,000. A HELOC in Canada can be a maximum of 65% of your home’s appraised value unless the lender combines the HELOC with the balance remaining on your mortgage, in which case you get up to 80% of the value of the home. However, it is up to the lender to determine exactly how much of the 80% they’ll actually lend you.
Home Equity Line of Credit Toronto
You can draw on the revolving fund at any time and you will only have to start making payments once you have accessed the money. Once you have accessed the money, you have to at least meet the monthly interest payments. Whereas a conventional mortgage or a fixed-term loan has an amortization period, HELOCs in Canada typically do not.

Qualification for HELOC varies from one lender to the next. Other than having equity on your home and retaining equity of a minimum 20%, other HELOC qualifications include:

Good credit score (typically 740+ to get the best rates). Credit score under 650 will rule you out with most lenders
Proof of income to show you can afford the monthly payments. These could be pay tubs, T4s, and so on
A debt-to-income ratio of between 40% and 50%

Good credit score (typically 740+ to get the best rates). Credit score under 650 will rule you out with most lenders
Proof of income to show you can afford the monthly payments. These could be pay tubs, T4s, and so on
A debt-to-income ratio of between 40% and 50%

Featured Rates

Fixed

Lender
Rate
Term

Toronto-Dominion
3.04%
5 years
Scotiabank
3.04%
2 years
MCAP
2.99%
5 years
CMLS
2.84%
3 years
RFA
2.64%
5 years
First National Bank
2.74%
5 years
DUCA
3.84%
1 year
B2B
3.19%
2 years
Meridian
2.79%
5 years
RMG Mortgage
2.69%
5 years

Variable

Lender
Rate

Manulife Bank
2.74%
5 years
Home Trust
3.00%
5 years

Other

Type
Rate

Secured line of credit
4.45%
Private mortgages
5.99%

Questions?

We Are Here to Help

call (416) 419-3939

Lowest Interest Rates and Terms

At Approved Mortgage Broker, we search for the lender with the lowest interest rates and the terms that best suit you. We also go for a lender with the least fees. The most common HELOC fees are appraisal fees, title search and title insurance fees, and legal fees. Lenders are usually flexible and our team’s negotiation skills honed over years means the best possible deal. Did you know you can pay off your mortgage using a HELOC? You can replace your mortgage loan with your HELOC since HELOC interest rates are lower than those of a mortgage. Some lenders transfer mortgages into HELOCs, but you will have to pay a penalty if you are paying off your mortgage early. At Approved Mortgage Broker, we will do the math to determine if you will save by replacing the mortgage with a HELOC.

What our CLients Say

Approved

gilles veilleux ★★★★★
Masoud and his team are truly focused and result driven. I did my refinancing with them, it went smooth from start to finish.
Roosevelt Freeman ★★★★★
I used Nick to renew my mortgage. He found me a better deal than my bank could offer and I intend to use him again the next time I need to renew. Nick did all the work, he made it easy and simple for me. He really knows his stuff!
Linda Howard ★★★★★
After some unfortunate interactions with my previous mortgage broker trying to close the deal I was recommended Approved by a friend of a friend. I didn't have my hopes high to be completely honest, however decided to give it a go and called Masoud. He was quite reassuring over the phone, and after our meeting I finally felt like I'm in the right hands. Long story short, we closed the deal and most importantly I got a much better rate than expected. I already recommended Approved to my colleague, and I'm sure there'll be more referrals from me when the time comes
Juan Pearson ★★★★★
Nick gave me great advice and fair rates to process my mortgage. Marianela, his assistant, was quick getting back to me and explained any questions about documents. Would highly recommend these guys.