HELOC
Unlock the equity in your Calgary home with a flexible, reusable line of credit at mortgage-level interest rates.
A Home Equity Line of Credit (HELOC) lets you borrow against the equity in your home — up to 65% of its appraised value — at interest rates far below personal loans or credit cards. Unlike a mortgage, a HELOC is a revolving credit facility: you draw funds when you need them and repay at your own pace. Calgary Mortgage Shoppe helps you access a HELOC from the most competitive lenders available.
Frequently Asked Questions
What is the interest rate on a HELOC?
HELOC rates are typically prime rate plus 0.50% (sometimes prime rate alone for the best-qualified borrowers). As prime rate changes with Bank of Canada decisions, your HELOC rate and payment will change accordingly.
Do I have to draw the full amount?
No. A HELOC works like a credit card u2014 you are approved for a maximum limit but only pay interest on what you actually draw. You can draw nothing and the HELOC still sits available for when you need it.
Can I get a HELOC if I still have a mortgage?
Yes u2014 this is actually the most common situation. Your HELOC limit is based on your available equity (up to 80% of home value, minus your outstanding mortgage balance). Your mortgage and HELOC can be held with different lenders in some cases.
Is HELOC interest tax-deductible?
In Canada, interest on borrowed money used to earn income (investments, rental property) is generally tax-deductible. Interest on a HELOC used for personal purposes (renovations, vacations) is typically not deductible. Consult your accountant for your specific situation.
How long does it take to set up a HELOC?
The process typically takes 2u20134 weeks from application to funding, including a property appraisal and legal work. We expedite the process wherever possible.