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Equity Lines of Credit

A home equity line of credit (HELOC) is a type of loan that allows a homeowner to borrow against the equity in their home. In Ontario, a HELOC is typically offered by a bank or other financial institution and is secured by the borrower's home.

To be eligible for a HELOC, a borrower must have equity in their home, which is the difference between the value of the home and the amount of any outstanding mortgages or liens on the property. The borrower can then borrow against this equity, up to a certain limit, and use the funds for any purpose they choose, such as home renovations, debt consolidation, or other expenses.

HELOCs are typically structured as revolving credit lines, which means that the borrower can borrow and repay the funds as needed, within the limits of the credit line. The borrower is only required to make interest payments on the borrowed amount until the end of the term, at which point they must pay off the remaining balance.

HELOCs may have variable or fixed interest rates, and the borrower may be required to pay closing costs and other fees.

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