Homebase Mortgages

Avoid an unpleasant surprise with home equity lines of credit

\"\"It’s a story as old as time: you get a great low introductory rate… and then the come down. You think you’re getting a great deal, but since you didn’t have one of our handy-dandy Canada mortgage brokers to help you, you didn’t realize what a raw deal you actually were getting. It’s important to really understand what you’re walking into before you sign on the dotted line. When you work with us, you’ll get all the help you need to know that you are getting the right HELOC for you. Don’t just hope that you’re getting the best deal, KNOW that you’re getting the best deal.

Is that just an introductory rate, or are you happy to see me?

You’re going to need to establish that the rate you’re getting is a really going to have to the rest of your HELOC. There’s so many people that end up getting the wrong home equity line of credit that could easily be fixed just by looking over the paperwork. You’re going to want to make sure that the great introductory rate that you’re getting sticks with you over the life of your loan. Even if they say that you’re going to keep this rate, let us look over it as well as your lawyer. Don’t leave anything to chance.

How much will it cost to close?

Closing costs for a HELOC are about the same as you would pay for a mortgage – this is the place you want to pay close attention. Extra fees can be lobbed on there pretty arbitrarily, so you’re going to want to look over your documents and get a clear cut explanation of each fees. Sometimes you can save up to 20% off your closing costs just by doing a little due diligence!

What is the minimum revolving balance?

Almost every HELOC is going to have a minimum revolving balance, so you’ll want to know this before you sign the paperwork. Having a HELOC without a minimum revolving balance is idea, but we don’t live in an ideal world. You’ll want to ask and find out how much you’ll have to pay interest on each month, even if you’re not going to be using it. Knowing is half the battle after all, so make sure you know before you sign!

Know what you’re getting into

You need to always know what you’re getting yourself into. When yo work with one of our Toronto mortgage brokers you’ll get all the help you need to understand your home equity loan in full. From balloon payments to odd penalties (like closing your HELOC early), you’re going to be prepared for what’s coming down the road.

If you’re thinking about an equity line of credit but you don’t know where to start, give us a call! We’ll be here for you through every step of the process and can help you find the lender that will give you the best deal.

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