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Jayson Lowe explains how HELOCs work differently from mortgages: lenders can call the loan due and change terms whenever they want, giving them control over the instrument, not you. Before taking one out, understand what you're giving up.
Jayson Lowe explains how HELOCs work differently from mortgages: lenders can call the loan due and change terms whenever they want, giving them control over the instrument, not you. Before taking one out, understand what you're giving up.
If you look at the documentation on probably any home equity line of credit in Canada, they're an on demand loan structure, meaning the lending institution can call that loan due versus in a mortgage contract. They can't necessarily do that the same way because you have a term for that contract. Recognize that they control that instrument, not you, and they can change the rules at any time and they don't need to ask your permission. What is the price on control? What is the value of control? What is the rate of return?
