What is TD Home Equity FlexLine?
A TD Home Equity FlexLine can have two components
The revolving portion
The revolving portion is a line of credit. It uses a variable interest rate based on TD Prime Rate.
It can be paid as quickly as you like. A minimum monthly interest-only payment is required.
The term portion
The optional term portion is similar to a traditional mortgage loan with regular payments and a variety of terms, interest rates and prepayment options.
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The TD Home Equity FlexLine is a home equity line of credit, or HELOC. That means, you can use it to unlock the value of your home to get a line of credit.
Put more simply, it's a type of loan that uses your home as collateral. Let's say you're buying a home.
If you have 20% or more of your home's value², like for a down payment, you have the option to buy a home with either a traditional mortgage or a TD Home Equity FlexLine.
With a TD Home Equity FlexLine, as you pay down your principal, you can access credit, up to your credit limit (65% the value of your home).
For homeowners, a TD Home Equity FlexLine allows you to borrow against your home equity which often means a lower interest rate compared to unsecured credit, making it a cost-effective option.
The TD Home Equity FlexLine with optional term portions combines the flexibility of a line of credit with the structure of a mortgage. It can give you ongoing access to funds in a line of credit on one side, and predictable payments on the other.
You can then use the available credit towards upcoming expenses, such as a renovation project or education.
Combine the flexibility of a line of credit with the structure of a mortgage.
That sounds great, but how does it really work?
If you have 20% or more of your home's value2, like for a downpayment, you have the option to buy a home with either a traditional mortgage or a TD Home Equity FlexLine
You can borrow up to 80% of the value of your home3. This is the plan limit.
You can have a line of credit up to 65% of the value of your home. This is the credit limit.
A TD Home Equity FlexLine can be comprised of a revolving portion and optional term portions
Your revolving portion is your line of credit. Basically, you can use your house as collateral to get credit—up to 65% of the value of your house, or your credit limit
Anything you borrow above that 65% credit limit must go into a term portion
Term portions function similarly to traditional mortgages (you can have a fixed or variable rates, open or closed term, etc.)