What is a home equity line of credit?
A home equity line of credit, also called a HELOC, is a secured form of revolving credit. The lender uses your home as a guarantee that you’ll pay back the money you borrow. As a revolving form of credit, you can borrow money, pay it back, and borrow it again, up to a maximum credit limit.
How does a MeritLine home equity line of credit work?
If you are a homeowner, you are eligible to borrow up to 65% of your home’s equity, or use that equity as collateral. Wondering what your home equity value is? You can find out by following this formula:
Your home’s market value less what you owe on the home (your mortgage amount).
What are the rates for a home equity line of credit?
Rates for a home equity line of credit vary depending on the Owner. The minimum Meritline rate would be the Libro Prime Rate plus 1.00% — contact a Libro Coach for more information.
Benefits of a MeritLine
- You can establish a line of credit that uses up to 65% of your home equity.
- The variable borrowing rate is lower than other credit options.
- Your variable rate will follow prime rate changes.
- You don’t have to pay any costs or charges if your MeritLine is not used.
- You can access your MeritLine funds through your chequing account using Online Banking, telephone banking and ATMs.
- You can convert all or part of your MeritLine to a fixed-term mortgage at any time.
What are the steps to get a MeritLine home equity line of credit with Libro?
To get started, book a meeting with a Libro Coach. Your Coach will discuss your renovation and financing needs and the potential for a home assessment.