An equity line of credit is ideal for essential purchases such as investment opportunities, RRSP contributions, home renovations, or taking those overdue vacations. It allows you to borrow money on the equity built up in your mortgage without arranging for individual loans.
There is no yearly fee. Interest rates are lower than most credit cards, and no interest is charged if the line of credit is not used. If a balance is owed, interest is calculated on the daily outstanding balance and charged at month’s end. When you pay down the line of credit, it is available to you again without having to reapply. The borrowing minimum is $5,000.
For peace of mind, credit life, disability, and critical illness insurance are available.