Home Equity Line of Credit (HELOC)

Access cash with a lower interest rate than that of a loan or credit card. Plus enjoy tax benefits on home renos. Pay less interest with a HELOC today.

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Home Equity Line of Credit (HELOC)

What is a HELOC?

A HELOC is an outstanding mortgage option. Borrow money using your home value without having to sell it. With a HELOC, you can access the equity in your home — the difference between what your home is worth and what you still owe.

With a home equity loan, you can easily access funds like you do with a regular line of credit. Your approved loan amount is conveniently attached to your chequing account so there is no need to make transfers from one account to another. Spend what you need, whenever you need to, up to your available credit limit. 

You pay interest only on the amount you actually use. Plus, interest rates are usually lower than other types of credit, which can save you money over time.

Discover HELOC benefits!

Discover the flexibility and advantages of a HELOC. Whether you're managing large expenses or looking for ways to save on interest, a HELOC can provide the solution you need.

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Access cash when you need it.

This revolving line of credit is perfect for larger expenses. Pay interest only on what you use.

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Discover tax benefits!

If you're borrowing for renovations, a HELOC line of credit is the way to go. The interest is tax deductible for home improvements.

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Enjoy lower interest rates.

A HELOC mortgage in Canada has an interest rate lower than a credit card or a general loan because it's drawn from the equity on your house.

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Pay off your debt.

 Because HELOC offers such a low interest rate, it’s perfect for paying off high interest debt.

How Much Money You Can Borrow with a HELOC?

The amount you can borrow depends on your home's value and mortgage balance. With Innovation, you can access up to 80% of your home's value, minus what you still owe on your mortgage. Your financial situation counts too when it comes to your borrowing limit. A good credit history and a steady income can help you borrow more.

A HELOC line of credit is a financial tool that grows with you. As you pay down your mortgage and your home's value goes up, the credit available to you may increase as well.

What Do You Need to Qualify?

First things first, you need to own a home with some equity built up. The more equity you have, the bigger the amount you can borrow. A good credit history, including keeping up with monthly interest payments, shows you're responsible with finances, which helps in securing approval. We'll also assess your income and current debts, including any credit limit interest and variable interest rate obligations. 

Steady income and managing debts, including interest only payments, put you in a strong position for mortgage refinancing. Finally, we calculate your home's market value to determine how much you can borrow.

The Documents You Need When Applying for a HELOC

Enjoy an easy HELOC application. Just provide us with the following documents:

  1. Proof of income (recent pay stubs or tax returns)

  2. Bank statements

  3. A list of your assets and debts

  4. Property tax assessment or professional appraisal

  5. Mortgage statement

  6. Government-issued ID

If you’re missing anything, our friendly online banking team is always here to assist! You can also see our mortgage application checklist (pdf).

HELOC vs Other Options

A line of credit mortgage is also known as a Home Equity Line of Credit (HELOC) because the line of credit is secured by the equity in your home. It’s an excellent resource you can use for anything – a new vehicle, a home renovation project… Use it anytime on anything and save on interest!

Home Equity Line of CreditLine of CreditCredit Card
Flexible access to cashFlexible access to cashFlexible access to cash
Secured by your homeUnsecuredUnsecured
Low interest rateMedium interest rateHigh interest rate
Tax deductible (home renos)

Not tax deductible

Not tax deductible
OngoingOngoingOngoing
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Home Equity Line of Credit Questions

What should I know before speaking to you about a mortgage?

Checklist - When applying for a mortgage, we'll need some documents and information. Here’s our mortgage application checklist (pdf).

Residential Mortgage Security - When you borrow money to buy a house, we require security in the form of real property.

Mortgage Default Insurance - As per Legislation, we can only lend up to 80% of the purchase price or value of your new home. If you have less than 20% for a down payment, you'll need mortgage default insurance (pdf).

Is a HELOC right for me?

A homeowner line of credit might be right for you if.

  • You want to use your house equity to borrow money for a renovation.
  • You want to borrow at an interest rate lower than that of a credit card.
  • You need quick access to funds to pay for some large expenses in a short period of time.

Do you offer mortgage insurance? How does it work?

A protection plan provides peace of mind for you and your loved ones. During a tough time, you can focus on your family while we focus on protecting you from financial loss. With an insured mortgage, if you are unable to make your monthly payments on your mortgage or home equity lines, CUMIS, our reputable insurance company, will make the payments for you. You can apply for a variety of insurance types for your mortgage: disability, life, loss of employment, or critical illness. 

For instance, if you lost your job and had loss of employment insurance on your mortgage, CUMIS would cover your monthly payments until you found a job again (up to the maximum time noted in your policy). This way, you wouldn't have to worry about losing your home during a difficult time.

HELOCs Help You Save More Money!

Get convenient access to cash with a HELOC. Pay less interest, and benefit from tax deductions.

 

AIR = Annual Interest Rate

APR = Annual Percentage Rate

Annual Interest Rate = The total cost of credit expressed as an annual percentage, not including various non-interest charges.

Annual Percentage Rate = The total cost of credit expressed as an annual percentage, taking into account, both interest and various non-interest charges.

If there are no non-interest finance charges, the AIR and APR will be the same.

APR Assumptions:
a. $300,000 Mortgage
b. 25 Year Amortization
c. Applicable Term for Each
d. $400 Appraisal Fee

Applicable to residential mortgages only and subject to Innovation Federal Credit Union lending criteria for residential properties. Some conditions apply.

Interest rate compounded semi-annually not in advance. Interest rates are subject to change without notice.Applicable to residential mortgages only and subject to Credit Union lending criteria for residential properties. Some conditions apply.

Rates subject to change without notice.

Innovation Federal Credit Union will lend for properties located in Canada only.

Additional information for building mortgages could be required depending on the type of construction project you are undertaking.

Loans and mortgages can be approved in one business day if you have submitted all required paperwork  OR, you will be able to book an appointment in one business day and be approved in two businesses days if you have submitted all required paperwork.