JO ALCORN
HOME TRENDS’ STYLE EDITOR JO
ALCORN SHARES HER FAVORITE FUR
BABY TRENDS.
WHAT IS A HELOC? A HELOC is like a sec-
ond mortgage that gives you access to cash
based on the value of your home. You can
draw from a HELOC and repay all or some of
it monthly, somewhat like a credit card with a
large balance and much lower interest rate.
With a HELOC, you borrow against your equity,
which is the home’s value minus the amount
you owe on the primary mortgage.
HOW MUCH CAN I BORROW? Typically,
a HELOC lets you borrow up to 80% of the
home’s value minus the amount you owe on
the mortgage. If your house is free from mort-
gages you can borrow up to 65% of the value
of the house.
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your HELOC
A HELOC, or Home Equity Line of Credit, is a
great way to turn the equity in your home into
cash you can access as you need it.
Dog themed décor adds
personality to your home.
Our fur babies are true
members of our families
and deserve the best! Pet
Love 4 Charity products
are Canadian-made and
fully washable with no
need to remove the cover.
They are also animal cru-
elty-free and filled with a
down alternative making
them hypoallergenic. Best
of all, a portion of the
profits from each product
sold goes to charity!
Amara, www.amara.com
ADVICE
FROM
TAMARA
TKACHUK
Wayfair, www.wayfair.ca
CANADIANHOMETRENDS.COM
Pet Love 4 Charity, www.petlove4charity.com
WHAT ARE THE BENEFITS OF A HELOC? A
HELOC gives you financial flexibility because
the cash is available but you only use it as you
need and repay as fast as you wish. There
are no restrictions on the use of funds. Many
people use a HELOC for debt consolidation,
or to pay off lines of credit or credit cards with
higher interest rates. It’s a great tool when you
use it to improve your house, to buy invest-
ment property or to become a private banker. A
HELOC offers low or non-existent closing costs
and some packages even include free ap-
praisals and legal costs. A HELOC also allows
you to get access to funds without refinancing
your mortgage and paying a penalty. You can
refinance your mortgage later when it reaches
maturity.
HELOC VS HOME EQUITY LOAN Both a
HELOC and a Home Equity Loan give you
access to funds based on the equity in your
home. The main difference is the terms of the
arrangement. With a Home Equity Loan, you
receive a lump sum of cash much like you
would with a traditional loan and you make
payments to repay the loan as per your per-
sonalized home equity loan agreement. With
a HELOC, you receive a line of credit which
allows you to access funds as you need it. If
you don’t need to use it, there is no interest or
repayments. A HELOC is a great option if you
aren’t sure exactly how much you will need or if
money will only need to be accessed in smaller
amounts over a period of time. - Text by Tamara
Tkachuk, www.bayviewfs.com