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 firstname.lastname@example.org
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.