TD Home Equity FlexLine (HELOC)

Our take on a home equity line of credit (HELOC)


What is a home equity line of credit (HELOC)?

A HELOC is an alternative to a mortgage. You get the option to borrow only what you need, as you need it. Plus, as it is secured by your real estate, you may get the benefit of an interest rate that is lower when compared to unsecured credit interest rates.

What is a TD Home Equity FlexLine (HELOC)?

TD Home Equity FlexLine is a way to use your most powerful borrowing tool – your home. As you pay back the amount you owe, the amount of credit available to you increases until it reaches your credit limit. It’s available when you need it, through a variety of convenient options, 24/71.

What can you do with a TD Home Equity FlexLine?

A TD Home Equity FlexLine can help you pay for things you may need, like a bathroom renovation. It can also be used to pay for things you may want, like a swimming pool. You can even use it for other costs related to home ownership such as home repairs or additional personal expenses such as education.

What should you consider?

  • How much can you borrow?

    You may be able to borrow up to 80% of the value of your home.2 However, you may not be able to borrow as much as you can with a mortgage.

  • What do you need to qualify?

    You may qualify if you have good credit and can show proof of adequate income. Connect with a mortgage specialist to check your eligibility.

  • Which documents do you need?

    Depending on your situation, you will need your most recent statements for any mortgages, loans and lines of credit as well as proof of income.


TD Home Equity FlexLine vs. a mortgage

TD Home Equity FlexLine (HELOC) and a mortgage are both credit products where your home acts as collateral. However, here are some key differences:

With a mortgage:
You get a loan for a single amount. That amount plus interest must be paid back over time.

With a TD Home Equity FlexLine:
You gain ongoing access to credit (Revolving portion)1. As you pay down your outstanding balance, your available credit increases up to your credit limit. You can also add a term portion at any time3.


Yes, you can have both. You may also be able to use a TD Home Equity FlexLine (HELOC) to pay out a mortgage. However, to do that you might have to pay mortgage prepayment charges. Get advice for your personal financial situation by connecting with a mortgage specialist.


On a Revolving portion you can:

  • Borrow up to the credit limit of the HELOC and get a variable interest rate that changes with TD Prime Rate.
  • As you pay down your outstanding balance, your available credit increases up to your credit limit1.
  • You can pay at your own pace without prepayment charges - pay as little as interest only or pay any or all of your outstanding balance at any time1.

On a Term Portion:

You can put all or a portion of your outstanding balance from the Revolving Portion into a Term Portion3 and establish regular payments at a fixed or variable interest rate for an open or closed prepayment term. If you opt for a Term Portion at set-up, you may be able to borrow up to 80% of your home’s value - compared to the maximum 65% in the Revolving Portion (the credit limit).

On a Term Portion closed to prepayment:

  1. You can make one or more prepayments up to 15% of your original Term Portion amount every year without a prepayment charge.

  2. You can increase your payment amount by up to 100% of your original regular payment.

  3. You can change your payment frequency: switch to one of our Rapid Pay Down options and possibly make up to an extra month’s payment every year.

On a Term Portion open to prepayment:

  1. You can prepay in full at any time without incurring a prepayment charge or increase your payment amount by as much as you like.

  2. You can change your payment frequency: switch to one of our Rapid Pay Down options and possibly make up to an extra month’s payment every year.


Legal

Subject to the terms of your agreement.

Lending value will be based on the lesser of the value or purchase price of your home at the time of application. Subject to TD Canada Trust credit criteria.

Subject to a minimum amount.


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