Home Equity Line of Credit
Maximize your home’s potential with a HELOC
A Home Equity Line of Credit (HELOC) is one of the most versatile and powerful financial tools available to homeowners and real estate investors. It allows you to tap into the equity you’ve built in your home, providing access to funds whenever needed—without altering your primary mortgage.
Unlike a traditional loan, a HELOC functions as a revolving line of credit, similar to a credit card. This means you can borrow, repay, and borrow again, up to your approved limit, offering maximum flexibility for both planned expenses and unexpected financial needs.
As financial expert Suze Orman once said, “Owning a home is a keystone of wealth—both financial affluence and emotional security.” A HELOC allows you to leverage that wealth strategically, helping you meet your financial goals while maintaining stability.
Why a HELOC Is an essential financial tool
A HELOC provides homeowners and investors with financial flexibility, allowing them to access capital on demand without taking out a new mortgage. This makes it an excellent solution for:
- Real estate investments
- Property renovations and upgrades
- Debt consolidation
- Emergency financial needs
- Large purchases (education, medical, business investments, etc.)
How a HELOC benefits real estate investors
For real estate investors, a HELOC is more than just a source of capital—it’s a key component of strategic wealth-building. Whether you’re looking to expand your portfolio, fund renovations, or leverage equity for further investments, a HELOC can help.
BRRRR Strategy (Buy, renovate, rent, refinance, repeat)
Investors use HELOCs to fund renovations, increasing property value before refinancing and extracting equity for the next investment.
Down payments on additional properties
A HELOC provides low-cost capital for real estate acquisitions without selling assets or taking on high-interest loans.
Short-term funding for fix-and-flip properties
Investors needing quick access to capital can use a HELOC to purchase and renovate properties before selling for a profit.
Financing property improvements to boost rental income
Using HELOC funds for renovations can increase rental property value, leading to higher rental rates and stronger cash flow.
Key benefits of a HELOC
1. Pay interest only on what you use
Unlike a traditional loan, a HELOC only charges interest on the amount borrowed, not the total credit limit. This feature helps you manage costs while maintaining financial flexibility.
2. Preserve your low mortgage rate
If you’ve locked in a low-interest mortgage, a HELOC lets you access additional funds without refinancing your primary loan—keeping your current mortgage terms intact.
3. Competitive interest rates
HELOCs typically have variable interest rates tied to the bank of Canada’s prime rate, often lower than personal loans, credit cards, or private financing, allowing for significant savings over time.
4. Flexible repayment terms
Many HELOCs offer interest-only payment options, helping investors and homeowners manage cash flow effectively while keeping costs low.
5. Easy access to funds for ongoing projects
A HELOC provides a revolving credit line, meaning funds can be accessed multiple times without reapplying, making it ideal for long-term investment strategies or phased renovation projects.
How much can you borrow with a HELOC?
The amount available through a HELOC depends on your home’s value and the equity you’ve built.
Major banks
Typically allow borrowing up to 65% of the property’s market value, minus the existing mortgage balance.
Alternative lenders
May offer higher loan-to-value (LTV) ratios, but often with higher interest rates or fees.
Other factors
Lenders consider credit score, debt-to-income ratio, and an updated property appraisal when determining HELOC eligibility.
What you need to qualify for a HELOC
For real estate investors, a HELOC is more than just a source of capital—it’s a key component of strategic wealth-building. Whether you’re looking to expand your portfolio, fund renovations, or leverage equity for further investments, a HELOC can help.
Key investor strategies using a HELOC:
1. Home equity
Most lenders require at least 20%–35% equity in the property.
2. Strong credit score
A higher credit score results in better terms and lower interest rates.
3. Debt-to-income ratio (DTI)
Lenders prefer a DTI below 50% to ensure borrowers can manage additional debt.
4. Property appraisal
A recent appraisal is typically required to confirm the home’s current market value.
5. Proof of homeowners insurance
Lenders need assurance that the property is protected.
HELOC vs. Home equity loan: What’s the difference?
Both options allow homeowners to access their equity, but they serve different purposes:
| Feature | HELOC | Home Equity Loan |
| Structure | Revolving line of credit | Lump sum loan |
| Payment Type | Interest-only (during draw period) | Fixed monthly payments |
| Best For | Ongoing or unpredictable expenses | One-time large expenses |
| Flexibility | Borrow, repay, and borrow again | One-time disbursement |
Case study:
How investors use HELOCs for growth
Using a HELOC for property expansion
Jennifer, a real estate investor, owned two rental properties and wanted to acquire a third. Instead of taking out a high-interest personal loan, she accessed $150,000 from her HELOC for a down payment on a new property. Within a year, she refinanced, paid off her HELOC balance, and continued growing her portfolio.
Funding a fix-and-flip project
David, a property flipper, needed quick capital to renovate a distressed home. By using a HELOC, he covered renovation costs upfront, sold the home at a profit, and repaid the HELOC within six months—avoiding costly private lending fees.
Tap into your equity.
Borrow what you need, when you need it.
Let Better Mortgage Select help you unlock your equity
At Better Mortgage Select, we understand that every homeowner and investor has unique financial goals. Our team of expert Mortgage Brokers will work with you to structure the right HELOC solution—ensuring you have the flexibility and capital needed to make smart financial moves.
“Do not wait to strike till the iron is hot; but make it hot by striking.”
– William Butler Yeats
Ready to unlock your home’s equity? Contact Better Mortgage Select today to discuss how a HELOC can support your financial goals!