Everybody’s favorite Dutch bank, ING, has finally released their eagerly awaited Home Equity Line Of Credit or their new HELOC. HELOC products are very popular and usefully for home owners who like the flexibility to tap into their unused equity. A HELOC is a type of mortgage that combines a line of credit and mortgage in one so that as your mortgage principal is paid down the equity created becomes available immediately as a line of credit. ING is marketing this fantastic financial tool for clients who handle revolving credit well and are working on enhancing their financial wellness.
Other features of ING’s new HELOC include:
- HELOC only (100% of funds can be advanced as a line of credit instead of mortgage)
- Available for owner occupied properties only, can’t be arranged on your rental or cottage
- Minimum credit score must be 620
- Maximum loan to value is 80%
- Interest only payments
- When drawing funds they can be electronically transferred to an external chequing account
- Accessible online, through a mobile app or over the phone
I should warn that although HELOCs can be used as a great financial tool which can actually help you pay down your mortgage more quickly or create wealth, they can be dangerous and shouldn’t be used like an ATM.
If you are interested in a HELOC, contact me here or book a call into my calendar below.
