Line of Credit

A secured line of credit functions similarly to an unsecured line of credit offered at most chartered banks and credit unions, however, with one difference. Secured lines of credit are registered on title similar to a mortgage, and generally offer substantially lower interest rates than unsecured credit lines. They function similar to credit cards, in that borrowers are able to take out funds when neccessary, return when not needed or affordable, and available to be again used in the future.

Lines of credit are particularly usefull to homeowners with unstable cashflows and a large amount of equity in their homes. Since borrowers are able to take and return large sums of funds from the credit line, this product gives the flexibility at no cost to people who have large incomes and expenses, but have irregular schedules.

These products are also usefull for borrowers with credit card debt. Replacing credit card debt with a line of credit can save big interest costs. Refinancing, Second mortgages and Helocs also provide suitable alternatives for those with a lot of high interest debt.

For more information about lines of credit, contact one of the qualified mortgage professionals at Alberta Mortgage or Apply Online.