Most people think of a mortgage agent as someone you meet once, at purchase. One of our clients has worked with us for almost ten years, through more than one mortgage and, more recently, a line of credit. Here is why a long-term relationship is worth having, and what to know about tapping your home equity.
CLIENT STORY AT A GLANCE
| Client | Long-term Ottawa client |
| Situation | Ongoing borrowing needs over about ten years, most recently a line of credit |
| What we did | Arranged mortgages over the years and a line of credit |
| In their words | “a great help to me” |
The situation
This client first came to us for a mortgage, and over the years came back as their needs changed. Most recently that meant a line of credit.
“Sean has been a great help to me in securing mortgages and recently a line of credit.”
— Long-term Ottawa client, 5-star Google review
What we did
Each time, we started from the client's current situation rather than the last file, compared the market and explained the trade-offs. Over ten years, a lot changes: rates, income, property values and goals. Having someone who already knows the history makes the next decision faster.
Line of credit vs. mortgage: what to know
- A home equity line of credit (HELOC) is secured against your home. It works like a revolving credit line: you borrow what you need, and interest is charged on what you use.
- There are limits. Under federal rules, a HELOC is generally capped at 65% of your home's value, and combined with your mortgage the total generally cannot exceed 80%. Your lender's own limits may be lower.
- It is not the same as a refinance. A HELOC sits beside your mortgage, while a refinance replaces it. Read HELOC vs. home equity loan and switching vs. refinancing.
- Use it for the right reasons. Borrowing against your home puts the home on the line. See refinancing mistakes to avoid, and our page on debt consolidation through your mortgage if high-interest debt is the reason.
Common Questions
What is a home equity line of credit?
A HELOC is a revolving line of credit secured against your home. You borrow as needed and pay interest on the amount you use, up to your approved limit.
How much can I borrow with a HELOC?
Under federal rules, a HELOC is generally limited to 65% of your home's value, and your mortgage plus HELOC together are generally limited to 80%. Individual lenders may set lower limits and will also assess your income and credit.
Is a HELOC better than refinancing?
Neither is better in general. A HELOC gives flexible access to funds without replacing your mortgage, while a refinance changes the mortgage itself and may involve a penalty if done mid-term. The right choice depends on your numbers.
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About this story: This story is based on a verified 5-star Google review from a TopRankin client. Names and identifying details are left out to protect client privacy. Every mortgage is different, so your rate, approval and timeline will depend on your own file.