My TD mortgage broker updated me that there will be changes starting August 20, 2012 for home equity line of credits by Canadian banks.
Currently, clients can get a HELOC up to 80% of the value of their home, if they qualify.
So if the house is worth 500K, the maximum HELOC can be 400K.
Under the NEW rules the maximum HELOC will be 65% of the value of the home.
So the same $500K home now offers a HELOC of only $325K.
Now those that are looking to use HELOCs to purchase investments will lose out on a significant source of CASH available, especially when average homes are around $500K. That is $75K of money that was accessible to you before the changes.
Talk to your mortgage broker if you have further questions and call me if you are looking to buy, invest or sell.
Jas Jagpal, Broker at RE/MAX Dynasty Realty Inc. He has formed 2 teams. One specializing in Investing, primarily in condos and the second helping clients sell their houses in the GTA. No matter what your needs are, contact him if you are looking to buy, sell or invest in the Greater Toronto Area.
Choose Results, Honesty & integrity. Choose Team Jas Jagpal.
Jas Jagpal, Broker 647.272.6629 jasjagpal@gmail.com Office: 905.471.0002
Jess Jagpal, Sales Representative jessjagpal@gmail.com 416.312.9742
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