Home Equity Line of Credit
The lowest cost form of borrowing you have available is a home equity line of credit - MeritLine at Libro. Basically, it allows you to use the equity you build in your home (the home's value less what you owe is the equity) as security for borrowing. This naturally reduces the rate far below other forms of credit.
- Cash is made available through your chequing account
- No costs or charges if Meritline is not used
- You can establish a line of credit that uses up to 80% of your home's equity as collateral
As a home owner, you may be eligible for a secured Line of Credit. But that doesn't mean you should use it for dinners out and or routinely over-spending.
The challenge with a line of credit is that you only pay off the interest automatically - not the principal. That you have to do deliberately - which is another great testimonial for a Libro Coach. We'll help you set up and manage your MeritLine and give you the understanding and support you need to manage it.