A HELOC gives you access to equity with no penalty, at a variable rate. A refinance locks in a rate and a payment. Which fits depends on what the money is for.
Same amount, same term, same amortization. If you change even one of those between the two scenarios, the cheaper option can flip, and that is how most comparisons end up misleading.
Know what you give up
One is usually cheaper but stiffer. The other bends more and costs more. Which one wins depends on how likely you are to move, prepay or break the term before it runs out.
Judge on the full cost
Look at what leaves your account: the monthly payment, the fees, the penalty if you get out early, and the conditions that stay with you after signing. A rate by itself tells you very little.
Documents to gather
What the lender will ask for.
Purpose of the file
Income and paperwork
Debts and credit
Property or security
Target timeline
Lender options
Frequently asked
Which documents should I gather?+
Your last two notices of assessment, recent pay stubs, an employment letter, three months of bank statements and proof of your down payment. Add a list of your debts, with balances and monthly payments. If you have all this before making an offer, a short financing window becomes realistic.
Current rates
Today’s rates, with the fine print.
These rates are indicative. Yours depends on your file, the type of mortgage (insured or not) and the lender. And look at the penalty too, it matters as much as the number.
Buying, renewing, refinancing, or something a bit out of the ordinary: tell us where you’re at, even if it’s still fuzzy. Mathieu gets back to you with next steps and the documents to pull together.
