A HELOC gives you flexibility a loan cannot. The trade-off is that it does not amortize: without voluntary principal payments, the balance is identical years later.
You repay and redraw at will, and the minimum payment often covers interest only. Without deliberate payments against principal, the balance stays exactly where it started.
Compare line, loan and refinance
For smaller work a line usually wins: no notary fees, no penalty. For a large amount over several years, a refinance at a lower rate wins despite the closing costs.
Understand the equity impact
Using equity reduces the safety margin in the property. Before withdrawing funds, the exit, repayment plan and impact on a future purchase or renewal should be clear.
Documents to gather
What the lender will ask for.
Purpose of funds
Limit needed
Variable rate
Repayment plan
Remaining equity
Renewal impact
Frequently asked
Line of credit or refinance for renovations?+
A line suits modest, occasional needs: no penalty, no notary fees, but a higher and variable rate. A refinance wins on a major project, provided the penalty to exit your current term does not eat the saving.
Current rates
Today’s rates, read with their conditions.
These rates are indicative. The one you get depends on your file, the type of mortgage (insured or not) and the lender, and the penalty attached to it matters as much as the number.
Buying, renewing, refinancing or an unusual situation: describe where you are at, even if it is still vague. Mathieu replies with the next steps and the documents to gather.
