Versatile Line of Credit

Versatile Line of Credit

Your home does the financing
This home equity line of credit lets you use the equity you have in your home to finance your projects. Renovate, buy that cottage or simply cover unexpected expenses.

Apply for a Versatile Line of Credit

What's a home equity line of credit (HELOC)?

A home equity line of credit—also known as a HELOC—is secured by your property and gives you access to an attractive rate. It lets you tie your loans to your line of credit, at different rates and payment conditions. This is a simple strategy that lets you finance your property first and then, a car, your RRSP, credit card payments, etc.

How does a home equity line of credit work?

The chart below is not accessible. Click the link for a detailed description.

The more you pay down your loan, the more you have available on your line of credit, until you reach the limit.

In this example, the determined value of the property is $500,000 and the Versatile Line of Credit is $400,000.

Illustration of how a home equity line of credit works. Illustration of how a home equity line of credit works.
  • Year  1: You make a down payment of 20% of the determined value. You don't have anything available on your line of credit.
  • Year  5: You have paid down 20% of the determined value ($100,000) since Year 1. This amount is available on the line of credit.
  • Year  10: You have paid down 40% of the determined value ($200,000) since Year 1. This amount is available on the line of credit.
  • Year  15: You have paid down 60% of the determined value ($300,000) since Year 1. This amount is available on the line of credit.
  • Year  20: You reach the 65% allowable limit of the determined value ($325,000) on your home equity line of credit.
  • Year  25: You have 15% remaining on the determined value ($75,000) on your home equity line of credit for linked loans. You have paid off your mortgage.

How much can you borrow?

If you have a 20% down payment or once you've paid down 20% of the determined value of your home, you can borrow up to 65% of your home's determined value.

However, the total balance on your line of credit and your tied loans (car, RRSP, credit cards) can’t exceed 80% of the determined value of your home.

How can you use a home equity line of credit?

You can use your line of credit for anything you like and you don't have to reapply each time.

Finance a second property

Use the net value of your home to finance a cottage or a condo in the city.

Renovations and repairs

Renovate and maintain your home to add to its market value.

Deal with surprise expenses

Life is unpredictable. If you need money fast, a home equity line of credit might be the answer.

Consolidate your debt

Combine your high-interest loans and save on interest charges while simplifying your debt repayment strategy.

HELOC advantages

  • Attractive rate Get a variable rate lower than on a personal line of credit. Pay interest only on the daily balance and the amount you use. Line of credit interest rates
  • Flexible payment options Choose from a variety of flexible payment options and prepay anytime, without extra charges.
  • Easy access to funds You only need to apply once and you have access to your line of credit any time.
  • It's there if you need it Use your line of credit only if and when you need it.

When to apply for a Versatile Line of Credit

  • When you apply for a mortgage
  • When you renew your mortgage or before your term is up (in some cases, you won't need a notary or have to pay notary fees)

Manage your home equity line of credit wisely

  • Aim to make payments above the minimum.
  • Make a budget and stick to it.
  • Take advantage of stable rates and roll the balance on your home equity line of credit (in full or in part) into a tied loan.

Apply for a Versatile Line of Credit

At a caisse

Make an appointment:

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By phone

Montreal area: 514-253-6473

Elsewhere in Canada and the US:1-833-353-6473

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With a mortgage representative

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  1. The determined value is set by Desjardins and corresponds to the market value or to other considered values.
  2. This is the prime rate of the Fédération des caisses Desjardins du Québec, plus or minus a spread in percentage per year.
  3. For Desjardins mortgage holders whose deeds were issued after 2008 and allow for it. Certain conditions apply.