Homebase Mortgages

How to Close Your Home Equity Line of Credit

\"\"If you want to close your home equity line of credit, you’ve come to the right place. While we as Toronto mortgage brokers can always help you open your line of credit, closing it can be a little different. You’ll usually have between 5 to 20 years to borrow and repay on your HELOC, but if you want to pay it all back early and close the line it won’t be difficult. Make sure you know how much you owe and have the amount available. Let us look at your paperwork and help you figure out if you’re going to have to pay any balloon payments at closing so you don’t have any surprises.

What is a HELOC?

Home equity lines of credit are like credit cards funded with the equity in your home. Instead of having to have the best credit, you’ll be able to cash in on all those mortgage payments you’ve been making. The best way to start off with one is to work with one of our Toronto mortgage brokers. Use it to remodel or repair your home, use it to send your children to university or start living your retirement dreams. Whatever you do with a HELOC you’ll have plenty of time to pay. You’ll just want to make sure that you’re ready to end it and have the funds available to pay it off in full.

Know Your Terms

You’re going to need to know what your terms are before you start getting your money together. Some have provisions where you must keep a minimum balance (ex: $300 or 10%) each month for a certain amount of time, say 5 years. After this time period is up, you can almost always settle your debt. By working with a Toronto mortgage broker you’ll be able to know when it’s time to pay up and when it’s time to hold on. You may be able to save more money by paying interest a few months more than having to pay a hefty pre-payment penalty that’s indicated in your mortgage contract.

Contact Your Lender

If you’re working with us as part of consolidating your debts, we’ll help you with this step. If you’re doing this on your own, you’re going o need to contact your lender and tell them that you want to cancel your home equity line of credit. Some lenders will ask you to keep your HELOC longer and will give you an incentive to do so. Others will give you an incentive to close early, but you will need to work with your broker.

If you’d like to know how to close your HELOC early, work with us! We’re here to help and we know how to deal with lenders to get you the best outcome. When you work with one of our talented Toronto mortgage brokers you’ll have the attention to your case and get the outcome that’s right for you. Visit our HELOC page today to learn more about how we can help you: http://www.homebasemortgages.ca/home-equity-loans/line-of-credit/

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