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					                                                                                                                                                                        Union Limited branch, as well as through U-Touch
                                                                                                                                                                        Telephone Banking or On-Line banking.

                                                                                                                                                                        Contractual payments are required once a month,
                                                                                                                                                                        usually on the first day of each month. Interim
                                                                                                                                                                        payments made during the month, if sufficient
                  Working together to achieve your goals                                                                                                                to meet the requirements of the next monthly
                                                                                                                                                                        instalment due, will defer the next payment date
                                                                                                                                                                        for one payment period.

Everything you ever wanted to know                                                                              A HELOC is attached to your Personal Chequing
                                                                                                                                                                        Interest only payment is ideal for covering a short
                                                                                                                                                                        term situation. For example, a borrower may be

about - Home Equity Line of Credit                                                                              Account and can be activated by writing a cheque,
                                                                                                                making a cash withdrawal, or debiting the account
                                                                                                                                                                        buying a new home before selling his existing
                                                                                                                                                                        property or buying an investment property. By
                                                        Appraised value of property               $500,000      through Interac, pre-authorized debit, or on-line       paying interest only, the loan payments are
                                                        Maximum for HELOC and mortgage                          and telephone banking. Borrowers may use this           minimized until the money becomes available to
                                                        combined, (80% of $500,000)               $400,000      money whenever they want, up to the credit limit,       repay the loan. Borrowers can then repay all the
                                                        Less balance owed on mortgage             $300,000      then they can pay it back and borrow again. A           money borrowed (called the principal) in one final
                                                        Potential HELOC limit                     $100,000      HELOC can also work as an inexpensive Overdraft         payment.
                                                                                                                Protection mechanism – if there are not sufficient
                                                        As you pay down your mortgage,            $325,000      funds in your chequing account, the money is            The HELOC is an open loan and can be paid
                                                        your potential credit limit goes up.                    automatically transferred from the HELOC. No            down or paid off completely at any time, without
                                                        If the mortgage is fully paid off, a                    monthly service charge applies.                         penalty – this makes the HELOC a great product
                                                        HELOC can be set up on its own,                                                                                 for borrowers who have the ability to make regular
                                                        (65% of $500,000)                                       Interest on a HELOC                                     extra payments or have short term plans to pay
                                                                                                                The HELOC helps homeowners borrow money                 their mortgage off completely.
                                                        The approval process generally requires a home          at a low interest rate by using their property as       The HELOC is a registered charge on the property
                                                        appraisal and verification of your income. In           security. The interest rate on a HELOC is variable      and must be paid in full if the property is sold.
                                                        determining your credit limit, your credit score and    and fluctuates with the Prime rate. Because the
                                                        other financial obligations will be reviewed.           balance of a HELOC may change from day to day,          Creditor Insurance
         Svitlana Mazepa, Branch Manager, Etobicoke
                                                                                                                depending on draws and repayments, interest on a        Homeowners might also seek a HELOC to establish
Ukrainian Credit Union Limited offers                   Features and Benefits                                   HELOC is calculated from the outstanding balance.       security in case of job loss or financial hardship.
its members a wide range of mortgage                    Because a home is typically a person’s biggest          No interest or payment is due until the borrowers       Ukrainian Credit Union Limited offers creditor
options designed to fit their specific                  asset, many homeowners use HELOCs for large             actually spend money.                                   insurance on HELOCs, that is, life, disability, loss
needs. In this article I will explain Home              expenses, such as home improvements, education,         Ukrainian Credit Union Limited offers its member        of employment, and critical illness insurance.
Equity Lines of Credit.                                 vehicle purchase, vacation, or medical bills and not    the interest rate starting from Prime rate (currently   Insurance guarantees that payments will continue
                                                        for day-to-day expenses.                                3%). Such low interest rate makes HELOC also a          to be made if the borrower loses the ability to pay
What is a HELOC?                                                                                                good vehicle for those seeking to consolidate other     the HELOC.
A Home Equity Line of Credit (HELOC) – is a             A HELOC is the best product to consider if:             debts – for example by paying of a credit card or       A HELOC is not for everyone, but it can be a
revolving type of mortgage that lets homeowners         • you want to purchase an asset such as a               two that are charging you 29.99%.                       great solution, depending on your personal
obtain money from the value, or ‘equity’ of their         retirement property using your home as full or                                                                circumstances. If you woud like to discuss whether
home without having to sell it. Equity is the             partial security                                      Repayments                                              a HELOC is the right choice for you, please call
difference between the price for which a home           • you have sufficient net worth but your assets are     The Home Equity Line of Credit has flexible             me or contact the Ukrainian Credit Union Limited
could be sold and the total debts registered              spread out over many investment types, making         payment options. At Ukrainian Credit Union Limited      branch nearest to you!
against it. New federal lending rules set the ‘credit     it difficult to raise cash quickly                    a HELOC may have repayment as low as 2% of
limit’ (the percentage of a property’s value that       • there is sufficient equity in the home to use it to   the amount used or just the accrued interest on         Svitlana Mazepa
homeowners can borrow against) at 65% of the              secure future loans without having to register an     the outstanding balance, based on the member’s          Etobicoke Branch Manager
home’s appraised value. A HELOC can be combined           actual mortgage every time additional funds are       preference. Borrowers have a choice to transfer a
with a regular mortgage for a maximum of 80% of           required                                              lump sum or to set up regular automatic payments.       416-233-1254 ext. 225
the home’s appraised value. For example:                • you want a low-cost, on-demand borrowing              Regular automatic payments are processed from           225 The East Mall, Toronto ON, M9B 6J1
Your home is currently worth $500,000 and your            option (especially compared to credit cards or        the Personal Chequing Account. Payments and
regular mortgage balance is $300,000. You could           unsecured loans)                                      inquiries are available at any Ukrainian Credit
be approved for a maximum $100,000 HELOC.

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