What's a HELOC and when should I consider one?
Quick Answer
Short answer: Home Equity Line of Credit lets you borrow against your home's value at prime + 0.5%.
Detailed Explanation
A HELOC works like a credit card secured by your home—borrow what you need, pay interest only on what you use. Most lenders allow up to 65% of your home's value (or 80% combined with your first mortgage).
Common uses: renovations, investment properties, debt consolidation, emergency funds.
- Interest rates float with prime (currently 6.95%)
- No payment schedule—dangerous for undisciplined borrowers
- Interest may be tax-deductible if used for income-producing investments
Disclaimer: This page is for general information only and does not constitute legal, financial, or real estate advice. Always verify details with a licensed Alberta REALTOR®, mortgage professional, or lawyer before making decisions. Buy in Edmonton assumes no liability for actions taken based on this content.
Tim Grover, RE/MAX Excellence • 780-288-5144 • 5607 199 Street NW, Edmonton, AB
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