Equitable Bank
Home Equity Line of Credit
Your guide on how to get the most from your combined
mortgage and Home Equity Line of Credit
Thank you for choosing Equitable Bank for your mortgage and Home Equity Line of Credit (“HELOC”). Having a HELOC in combination with a mortgage is a great borrowing option that can help you reach your financial goals faster.
HOW IT WORKS
The HELOC enables you to access the equity in your home, up to your approved credit limit, any time you need cash for: ● Life events such as starting a family, renovating your home, going back to school or making a major purchase ● Consolidating your debt
● Building and improving your credit profile ● Unexpected expenses
So, no matter what stage of life you’re in, you’ll be able to rely on your HELOC for help.
SENSIBLE INTEREST RATES TO HELP YOU SAVE
With the HELOC, you’ll be paying sensible interest rates, which can help you save money!
HOW TO ACCESS YOUR ACCOUNT
Now that you’re signed up for an Equitable Bank combined mortgage and HELOC, you’ll be able to access your HELOC account easily, any time. Within 10 business days of closing, you should receive:
● Your Equitable Bank Visa® Gold Access Card, for
purchases anywhere Visa is accepted, and for cash advances at ATMs1 displaying the Visa and/or Plus logos.
● Your initial set of personalized HELOC cheques, which are free of charge and will be sent to you automatically.
Inside the Equitable Bank
Home Equity Line of Credit
Look forward to saving money with
this flexible borrowing option
SAVE ON FEES
To save you money on fees that can really add up, Equitable Bank’s HELOC has been built with these
no fee features:
● Complimentary initial set of HELOC cheques
● No standard processing fees on your HELOC cheques ● No annual fees on your Visa Gold Access Card ● No fees for the current month’s paper statements ● No-fee online statement access and custom e-mail alerts ● No prepayment charge on your HELOC
● No fee for having a zero balance
● No interest on purchases made with your Visa Gold Access Card during the statement period in which they first appear, even if you are carrying a balance With all that money saved, you may even be able to increase payments on your mortgage!
With your Visa Gold Access Card, you can take advantage of these useful features:
Health and Legal Assistance Services:2 While travelling out of the country or at home, you have a source to
turn to when you need medical or legal information on a wide range of topics.
Auto Rental Collision/Loss Damage Insurance:2 Save money by being able to decline the collision damage
waiver coverage offered by the car rental company under certain circumstances. Subject to credit approval.
See Certificate of Insurance for details.
Emergency Card and Cash Replacement:2 If you need an emergency cash advance or replacement card when
travelling, your Visa Gold Access Card offers you this service. Subject to credit approval.
On top of these benefits, the Visa Gold Access Card comes with standard PIN Protection, which adds an extra level of security on the card when using it to make purchases or cash withdrawals.
FLEXIBILITY THAT SUITS YOUR LIFESTYLE
Your cash flow situation is unique and can change often. The Equitable Bank HELOC is there for you to use whenever you need it. You can take out the amount of money you need, within your approved credit limit, at any time—just as long as your mortgage and HELOC are in good standing. ● In conjunction with your mortgage component, your approved credit limit on your HELOC can be up to $100,000.
● Payments are also flexible. After the minimum amount due is automatically paid through a direct debit of your designated bank account, you can choose to make additional payments on your HELOC through your bank’s online banking service, or by mailing in a cheque. Once you’ve paid off some or all of your HELOC balance, the available credit increases for you to use the next time you need it.
® Visa Int./Peoples Trust Company licensed user. The Visa Gold Access Card is issued by Peoples Trust Company, a TM licensee of Visa Int. 1 Subject to daily ATM withdrawal limits determined by the ATM owner.
HOME EQUITY LINE OF CREDIT DETAILS
Q What’s the difference between a HELOC and a Home Equity loan?
A A Home Equity loan is a lump sum that is granted all
at once and must be paid back in pre-set amounts. A HELOC is a secured line of credit that you access when you need it. After you pay off some or all of your balance, your HELOC is still there for you to use again the next time you need it.
Q Can I get a HELOC without the mortgage component? A At this time, we do not offer a standalone HELOC product.
The HELOC can only be obtained in combination with a mortgage.
Q What does loan-to-value (LTV) ratio mean?
A Loan-to-value is the amount of a loan expressed as a
percentage of the value of the property securing the loan. In other words, it’s the percentage of the home’s price that is mortgaged. For example, if the value of a house is $100,000, and the loan amount is $80,000, the LTV ratio of this loan is 80%.
Q What does LTV have to do with a HELOC? A The Equitable Bank HELOC has a maximum LTV
of 65% for the HELOC component.
Q If I need the full 80% LTV to purchase a house, how is the HELOC of benefit to me?
A Some customers may want the flexibility and convenience
of a HELOC as a portion of the total collateral mortgage, since the HELOC component can be paid down or fully paid off without any prepayment charge. The HELOC is also reported to credit bureaus enabling customers to build their credit file.
EASY ACCESS AND SECURE BENEFITS
Q How do I access my HELOC funds?
A There are four ways to access your HELOC funds:
● You can request an initial cash advance at the time of funding up to the HELOC credit limit. ● An Equitable Bank Visa Gold Access Card will be issued to you to allow you to make purchases everywhere Visa is accepted.
● The Visa Gold Access Card can also be used for cash advances through ATMs displaying the Visa and/or Plus logos (subject to daily ATM withdrawal limits determined by the ATM owner).
● You will be issued an initial set of HELOC cheques free of charge, with no standard processing fees.
Q Can I receive more than one Visa Gold Access Card? A Only customers on the registered HELOC and mortgage
accounts will receive a Visa Gold Access Card.
Q Can I apply for just a Visa Gold Access Card without a mortgage?
A At this time, we do not offer a standalone card.
The Visa Gold Access Card can only be obtained with a combined HELOC and mortgage.
Q When do I receive my Visa Gold Access Card and my HELOC cheques?
A Within 10 business days of closing, you should
receive your Visa Gold Access Card and cheques (the PIN is mailed separately).
Q Can I request funds to be advanced on my HELOC as part of closing?
A Yes, once your HELOC and mortgage application has
been confirmed, your broker can make arrangements with Equitable Bank for funds to be advanced to you as part of closing.
(continued)
FREQUENTLY
Q How does taking an initial cash advance at time of closing impact my HELOC?
A When you receive an initial cash advance at time of
closing from your HELOC account, the amount of that cash advance reduces the remaining amount of credit available on your HELOC. If you take an initial cash advance that is equal to your HELOC credit limit, you wouldn’t have any credit available until you pay down your principal balance. An interest-only payment will be required on the cash advance balance, which will be shown on your first monthly statement.
Q Is there an interest-free grace period applicable to Visa Gold Access Card purchases?
A There will not be any interest charges on new
purchases made with your Visa Gold Access Card if you pay your entire New Balance shown on your monthly Account Statement by the Payment Due Date. If you do not pay your entire New Balance by the Payment Due Date you will not benefit from an interest-free grace period and will be responsible for paying interest on all those new purchases made with your Visa Gold Access Card. This interest will accrue at the rate shown on the front of your Account Statement from the first day of the next month’s statement period.
Q Does the interest-free grace period apply to cash advances?
A There is no interest-free grace period on cash advances
obtained through the use of the Visa Gold Access Card including, but not limited to cash advances from ATMs. Interest will be charged on all cash advances beginning on the transaction date of the cash advance, at the Interest Rate shown on your monthly HELOC statement.
Q Do I have to order the cheques? Is there a fee? A There is no charge for the initial cheque order, which
will be sent to you automatically within 10 business days of closing. There is no fee for standard cheque processing. When required, you can reorder cheques for a fee of $7.50 per set. Subject to change.
MAKING PAYMENTS
Q What is the monthly minimum payment for a HELOC? A Monthly minimum payments will be interest only, with
the amount dependent on your balance and interest rate.
Q I’ve already signed a pre-authorized debit agreement for my mortgage payments. Do I still need to fill out a separate agreement for my HELOC payments? A Yes, you will need to fill out a separate pre-authorized
debit agreement for your HELOC, even if you are using the same account for both authorized debits.
Q When are HELOC payments usually due?
A Your HELOC payments will be due on or around the 24th
of the month. You can request to have this changed to one of the two other billing cycles for a different time of month—either near the beginning or middle of the month.
Q How do I make my payments?
A The monthly payment due will be automatically
deducted from your designated bank account. You may also choose to make additional payments via your bank’s online banking service, or by mailing payment by cheque in the self-addressed envelope.
Q Once I begin paying down my mortgage, will my HELOC credit limit automatically increase? A There is no automatic rebalancing (increase) of your
HELOC credit limit.
Q Can I obtain more than one HELOC for my various properties?
A The HELOC is available with a mortgage on an
owner-occupied residential property of no more than four units.
® Visa Int./Peoples Trust Company licensed user. The Visa Gold Access
