ATB is offering a 3% rate on their HELOCs – the lowest rate in Canada! Available in Alberta until May 31, this makes it more affordable for home owners to access their equity – but is it a good idea to take out a loan when national interest rates are low?
The concept behind a Home Equity Line of Credit (HELOC) is simple – leverage your home in return for a hefty line of credit to draw from. However, it’s the underlying challenges associated with HELOC variable interest rates that makes a HELOC a tool best reserved for the thrifty and financially astute.
What is a home equity line of credit and how can it work for your borrowing needs? HELOCs can be a convenient way to access extra cash, but be aware of the pros and cons before tapping into your home’s equity to avoid dangerous levels of debt.
Downsizing to a smaller home or condo can be an effective way to free up equity, but it’s not always the right route. If you’re a boomer looking to cut corners, but can’t bear to part with the family home, consider these options.