Home Equity Line of Credit

Some consumers choose a line of credit (LOC) to partially or totally finance their home or renovation project. But it is primarily used for nvestment purposes or to access quick cash. Alberta Equity Representatives can provide you with all the correct information on these products.

If it is a secured line of credit that you seek, you can usually receive a rate of prime, which today is 4.75%. Unsecured LOC's can be as high as 3 or 4% above prime. The secured LOC can be a good option if the borrower plans on paying off the balance very quickly and wants to avoid penalties. Most consumers want to have a diminishing balance that they can keep track of with a fixed rate option.

Minimum LOC payments are usually interest only, which is great because it allows for a low re-payment amount. But when it comes to the balance, you will have a larger balance for twice the amount of time if you only plan on paying the minimum payment. Having a mortgage with a start to the term and an end to the term will allow you to actually pay off the principal and interest in a pre-calculated payment.

Please ask your Alberta Equity Representative if the Line of Credit option is right for you and your financing needs.