How does B-20 affect Home Equity Lines of Credit (HELOCs)?
The FRFI would limit the non-amortizing HELOC component to $325,000.
Key Points
Your lender wants to make sure you can eventually pay off your Home Equity Line of Credit (HELOC).
Your lender will keep a close eye on your credit score while you have a HELOC.
Your lender may lower your HELOC limit if your home value drops or your finances worsen.
You can only borrow up to 65% of your home's value with a HELOC where you only pay interest.
If you borrow more than 65% of your home's value, you'll need to make regular payments towards the principal, like a regular mortgage.
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Related Questions
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