- A HELOC is fully open and can be paid in full at anytime, whereas you will pay a penalty for breaking your closed fixed mortgage term early.
- With a HELOC each time you pay down the balance you can utilize the funds again without having to go through the application process.
- With significantly lower interest rates, HELOCs can be more affordable than loans and credit cards
- As HELOC funds are available for immediate use, you can simply write a cheque for unexpected expenses
- with a HELOC you pay interest every month, with a mortgage interest is only charged every 6 months
- Most HELOC has interest only payments where a mortgage has monthly payments based on your amortization period
These are only some of the differences between a mortgage and a Home Equity Line of Credit. It is important to explore all details of the products to ensure if they are right for you. If you can’t decide between the two, we now have access to combo products that have both options combined into one.