Home Equity Overview FAQs
Home Lending FAQs
What is a home equity line of credit?
A home equity line of credit is a type of revolving credit that uses your home as a collateral, or security for the debt.
Here’s how it works:
- The interest rate is variable.
- The monthly payment amount is based on the outstanding balance and will include principal and interest.
The term includes a draw period followed by a repayment period.
- During the draw period, you can borrow as much or as little as you need, whenever you need it. As you repay your outstanding balance, the available credit amount is replenished. This means the amount you can borrow increases, up to your credit limit. Make sure you understand our eligibility requirements before you apply.