Merix Financial’s New Heloc

November 16, 2009

Merix FinancialIf you have a certain amount of financial literacy and feel comfortable with money concepts, investing, and leveraging then the mortgage product for you is Merix Financial’s Home Equity Line Of Credit (HELOC).  The HELOC allows you to keep your home equity liquid. Merix’s HELOC allows you to borrow up to 80% of the value of your home as the maximum mortgage limit. As you pay down your mortgage making your regular monthly payments credit becomes immediately available to you through the line of credit component that is automatically built into the HELOC. If you choose to, you can draw on the line of credit at will for any purpose including for consumer purchases, renovations on your home, or the most advisable use; investments.
Lets use an example to illustrate the benefits of a HELOC:
Say you own a house worth $200,000.
You can arrange a HELOC up to 80% of the value: $160,000
You have 3 options on how you would like that $160,000 to be paid back to Merix:
#1- Fixed 5 year mortgage
#2- Variable 5 Year mortgage
#3- Pure line of credit at P+1 where you can pay interest only.
The great thing is you can arrange the Merix HELOC in any combination you choose. Say for instance that you take $100,000 fixed rate mortgage and a $60,000 line of credit. As you make your regular monthly payments on the mortgage amount more credit becomes available on the line of credit for you to access at will. You only pay for the line of credit if you use it and you have the option of making the minimum ‘interest only’ payment.
Here at Tridac we are big fans of the Merix HELOC and recommend it to clients who are looking to refinance or stay in their homes for the next 5 years. The Merix HELOC addresses one very big problem with mortgages: while most people will agree that putting your hard earned cash into your house through regular mortgage payments is good, money that is bricked up in your home is highly illiquid. That means that every dollar you put into the equity of your home is very very difficult to get back out of the home unless you sell. The HELOC allows you to tap into that equity and is especially useful for investing.
If you would like to learn more about the Merix HELOC please get in touch with me. I love explaining its benefits to people! Christopher Molder – Son Of A Broker


Christopher Molder

Mortgage Broker

Christopher is a mortgage broker based in Toronto, Canada. And a son of a broker too. He’s a second generation mortgage broker. Following in his father’s steps he joined the family mortgage business straight out of university.