Mortgage Blog
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What is a HELOC?
September 24, 2025 | Posted by: Angela Robinson
A HELOC is like giving your home a financial “credit card.” Here’s how it works:
- It’s considered a second mortgage, secured against your home.
- Works as a revolving line of credit — borrow, repay, and borrow again (up to 65% of your home’s value).
- Payments can be interest-only or principal + interest — with the flexibility to pay down anytime, penalty-free.
- Typically, you can pay interest only for the first 10 years, then repay the principal in the remaining term.
- The rate is variable and tied to prime, so it moves with Bank of Canada rate changes.
A HELOC can be a smart tool for renovations, investments, or emergency funds — but it’s important to plan ahead for repayment since balances can build quickly.
Thinking about whether a HELOC is right for you? Let’s talk about how it could fit into your financial strategy. Contact us at 780 701 3888 or marc@albertamortgagepros.ca ????
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