Unlock the power of your home equity with a revolving credit line. Borrow what you need, when you need it, and only pay interest on what you use.
A HELOC is a revolving line of credit secured by your home that lets you borrow against your home equity as needed. Think of it like a credit card, but with much lower interest rates and your home as collateral.
Borrow, repay, and borrow again up to your credit limit without reapplying
Access funds anytime through online banking, checks, or transfers
Pay only interest on the amount you borrow during the draw period
Typically 20-30 year terms with a 10-year draw period
In Ontario, you can typically borrow up to 65% of your home's appraised value with a standalone HELOC, or up to 80% when combined with your first mortgage (known as a readvanceable mortgage).
Example: If your home is worth $600,000 and you owe $300,000 on your mortgage, you could access up to $90,000 with a standalone HELOC (65% of $600,000 = $390,000 - $300,000 owed = $90,000 available).
A HELOC offers unmatched flexibility and cost-effectiveness for accessing your home equity
Typically prime + 0.5% to 1%, much lower than credit cards or personal loans
Only borrow what you need, when you need it, without reapplying
During the draw period, you only pay interest on what you've borrowed
Interest may be tax-deductible if used for investment purposes (consult your accountant)
Pay down your balance anytime without penalties, freeing up credit
Have peace of mind knowing you have access to funds for unexpected expenses
Getting a HELOC is straightforward. Here's the step-by-step process
We review your home equity, income, credit score, and financial goals to determine your eligibility
Your home is appraised to confirm its value, and we secure approval for your credit limit
Complete the legal documentation and register the HELOC against your property title
Once setup is complete, access your funds anytime through online banking or other methods
Understanding the differences helps you choose the right solution for your needs
| Feature | HELOC | Home Equity Loan | Refinance |
|---|---|---|---|
| Borrowing Flexibility | Revolving credit - borrow as needed | Lump sum only | Lump sum only |
| Interest Rate | Variable (Prime + 0.5-1%) | Fixed or variable | Fixed or variable |
| Payment Type | Interest-only during draw | Principal + interest | Principal + interest |
| Access Speed | Instant once approved | One-time disbursement | One-time disbursement |
| Reusability | Reuse as you repay | One-time use | Must refinance again |
Ontario homeowners use HELOCs for a variety of financial goals
Fund kitchen remodels, bathroom upgrades, or additions that increase your home's value
Average: $30,000-$100,000
Pay off high-interest credit cards and loans with lower HELOC rates
Save 15-20% on interest
Leverage home equity for rental properties or other investments
Interest may be tax-deductible
Cover tuition, books, and living expenses for you or your children
Lower rates than student loans
Use equity from your current home to purchase a second property or cottage
Avoid selling your home
Have access to funds for unexpected expenses like medical bills or job loss
Peace of mind backup
While HELOCs offer flexibility, remember that your home is collateral. Only borrow what you can afford to repay, and avoid using a HELOC for discretionary spending like vacations or luxury purchases.
Here's what lenders look for when approving a HELOC application
At least 20% equity in your home
Home value minus mortgage balance
Minimum 650 (680+ preferred)
Higher scores get better rates
Stable, verifiable income
Employment letter or tax returns
TDS under 44%
Total debt payments vs. income
Owner-occupied primary residence
Some lenders allow rental properties
Recent appraisal required
Determines your available credit
Even if you don't meet traditional lending criteria, we work with alternative lenders who may be able to help. Contact us to discuss your options.
Understanding HELOC pricing and structure
Starting rate for qualified borrowers
Current Prime Rate: 6.45%
Your Rate: 6.95% - 7.45%
HELOC rates are variable and tied to the prime rate. When prime changes, your rate adjusts automatically.
Amount Borrowed
Interest Rate
Monthly Interest Payment
During the draw period, you only pay interest. Principal payments are optional.
Most HELOC applications complete in 3-4 weeks from start to finish
Initial consultation to discuss your needs. We review your home equity, income, and credit to determine eligibility.
Professional appraisal ordered to confirm home value. Lender reviews your application and supporting documents.
Receive conditional approval. Complete legal documentation and title search. Lawyer prepares closing documents.
Sign final documents with your lawyer. HELOC registered on title. Access your credit line immediately.
Gather these documents to streamline your HELOC application
Note: Specific requirements may vary by lender. We'll provide you with a complete checklist tailored to your situation during your consultation.
Real experiences from Ontario homeowners who chose a HELOC
"We used our HELOC to renovate our kitchen and add a second bathroom. The flexibility to draw funds as needed made the renovation process so much easier. Rio Financial found us a great rate!"
Michael & Sarah T.
Toronto, ON
"I consolidated $45,000 in credit card debt with a HELOC and cut my monthly payments in half. The interest savings are incredible. Best financial decision I've made."
David L.
Mississauga, ON
"Having a HELOC gives me peace of mind knowing I have access to funds for emergencies. The team at Rio Financial made the application process straightforward and stress-free."
Jennifer K.
North York, ON
Get answers to common questions about HELOCs in Ontario
Tools and guides to help you make informed decisions
We help homeowners across the Greater Toronto Area and Ontario access their home equity
Don't see your city? We serve all of Ontario. Contact us to discuss your needs.
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