Home equity line of credit
Use your home equity to finance your property and projects with our Versatile Line of Credit. Get pre-approved to see how much you can borrow and to lock in your rate.
On AccèsD
Are you a member? Log in to AccèsD, select Home, then select your goal. When you apply for a mortgage pre-approval online, you'll get a quick response.
By phone
Give us a call to discuss the homebuying process or make an appointment to apply for mortgage pre-approval.
What is a home equity line of credit (HELOC)?
A HELOC
You can apply for a HELOC if you put down at least 20% when you bought your home or if you've now repaid at least 20% of the determined value of your home. We base this value on several factors, such as the market value.
Financing for your home
You can use our Versatile Line of Credit to finance or refinance your home and get a loan that's tied to your home equity line of credit. This tied loan works like a traditional mortgage, with payments subject to the rate and conditions
Use your home equity to finance your projects
As you pay down your tied loan, the amount available on your HELOC gradually increases. Reborrow this amount to pay for your renovations, finance a second property or cover unexpected expenses.
A solution for personalized and diversified financing
With the Versatile Line of Credit, you can personalize your mortgage and tie several loans to it.
Each of the tied loans has its own rate, term and payment schedule. It's handy if you want to:
- Take advantage of both fixed and variable rates
- Change up your financing conditions and spread out your payments over different terms
- Get financing that maintains each co-borrower's financial flexibility, even as each borrower remains separately responsible for the full amount
Example
You and your partner are buying a home and need to borrow $300,000. You're comfortable with some risk but your partner isn't. You decide to use a HELOC and divide the loan to meet both of your needs.
- You choose a $180,000 loan at a reduced variable rate of 6.10%
3 over a 5-year term. You want to make weekly payments, which come to $269.66. - Your partner chooses a $120,000 loan at a fixed rate of 4.95% over a 3-year term. They prefer making payments every 2 weeks, which come to $320.20.
Both of these loans are tied to your Versatile Line of Credit and are part of the same mortgage.
Why choose a HELOC?
Good interest rate
When you borrow directly from your line of credit, you get a variable rate
Use it the way you want
Borrow only if and when needed.
Flexible payments
Choose from a variety of flexible payment options. Decide your payment amount and frequency or convert it to a tied loan for a regular payment schedule and stable terms.
Easy and convenient
Borrow money whenever you want. You don't have to contact us unless you want to borrow under specific conditions.
How does a HELOC work?
1. Get your Versatile Line of Credit
Talk to your mortgage advisor about a Versatile Line of Credit if you're about to buy or renovate your home or renew or refinance your mortgage. That's when a home equity line of credit most makes sense.
New eligibility criteria for the Versatile Line of Credit
As of June 30, 2023, you need to meet certain criteria to get a Versatile Line of Credit. These vary depending on your situation.
- If you're buying a property, you must have a down payment of at least 20%. Your mortgage cannot be insured by the Canada Mortgage and Housing Corporation (CMHC) or Sagen.
- If you're renewing or refinancing your mortgage, you must have repaid at least 20% of the determined value of your property.
Other factors, such as how much your home may have appreciated over time, are also used to determine your eligibility. Your advisor can explain these factors to you if you're interested in our Versatile Line of Credit.
2. Increase the funds available on your HELOC
As you pay down the principal on your mortgage, the amount available on your line of credit increases. You can then reborrow this amount to meet your needs.
Can't access your HELOC?
If you took out your mortgage with a down payment of less than 20% before June 30, 2023, you need to contact us to see if you can access your line of credit.
A mortgage advisor will look at aspects of your file to check your eligibility, including:
- Any increase in your home value
- The amount of principal repaid
- Your financial situation, such as your debt to income ratio
Once you have access to your HELOC, you no longer need to contact us to use it.
3. Use your HELOC
If you want to finance a project with your HELOC, you have 2 options:
- Borrow directly from your line of credit, which has a variable rate
- Have your advisor, if possible, convert the borrowed amount into a tied loan with its own rate and terms
You can borrow up to 65% of the determined value of your property. The total value of your HELOC and tied loans can't exceed 80%.
Good to know
You can easily transfer money between your accounts and your HELOC on AccèsD.
Examples
You buy a $300,000 condo with a 20% down payment, that is, $60,000. Your rate is 4.5%. Every month, you pay $1,328.34 in principal and interest. The amount of the principal becomes available on your HELOC. After 5 months, you'll have paid $2,199.60 toward the principal, which then becomes available on your line of credit for you to use as you wish. Your HELOC was opened when you bought your home because you had a 20% down payment.
Two years ago, you bought a home for $500,000 with a 5% down payment of $25,000. Your rate was 4%. Every month, you pay $2,598.54. You now want to use your HELOC to finance some bathroom repairs but you see that there's no amount available. That makes sense. Since you haven't paid back at least 20% of your home's determined value, you don't have access to the line of credit. In this case, you'll need to look for other financing options.
You have $20,000 in debts and want to consolidate them. You have $200,000 available on your HELOC. Because you want stable loan terms, you contact your advisor to create a tied loan. You take out a tied loan for $20,000 at a fixed rate and 7-year term. As you pay this loan, the repaid principal again becomes available on your line of credit.
You need $80,000 to update your home. You've already paid off your mortgage, which means you have access to the full amount of your HELOC. Ask your advisor to create a tied loan so you get a stable rate and fixed payment terms for 5 years.
Discover the benefits of getting pre-approved
Get pre-approved to show you're a serious buyer and see how much you can borrow. No commitment is required, and you'll guarantee your rate for a fixed period.
Manage your Versatile Line of Credit online
Log in to the web version of AccèsD or go to the Home section of the Desjardins mobile services app for all your Versatile Line of Credit needs.
- Check your balance
- Check your interest rate
- Pay your balance
- Track your transactions
Download the Desjardins mobile services app
Making your Versatile Line of Credit work for you
Follow these tips to manage your loans and stay in the black.
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Consider saving up for your projects before borrowing on your line of credit.
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Talk about it with your advisor beforehand.
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Aim to pay more than the minimum payment.
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Make a realistic budget and payment schedule. Stick to them!
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If you need a significant amount and don't think you'll pay it back in the short term, convert the balance of your HELOC into a tied loan. That way, your payments will be regular.
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Protect your financing and rest easy with Versatile Line of Credit loan insurance.
Frequently Asked Questions
You can use a HELOC to finance your property and your available credit goes up as you repay the principal. You're free to borrow only what you need, as you need it, to pay for things like renovations or a new cottage. Borrow up to 65% of your home's determined value.
A traditional mortgage is primarily used to finance a property and doesn't include a line of credit. If you want to use your home equity to pay for your projects, contact your advisor to look at your options.
The interest rate is variable and based on the Desjardins prime rate, your financial history and your project.
Like a traditional mortgage, the terms and interest rate on each tied loan is set when you sign your agreement. They're based on the type of loan you chose, the term and the amortization.
You can check your loan and HELOC rates on AccèsD.
When you borrow directly from your HELOC, interest on the balance due is calculated daily and based on the applicable variable rate, divided by the number of days in the year. For example, let's say you borrow $2,500 for 15 days at 7%. The interest on this amount is $7.19. Then, you make a $500 payment on the principal and carry a $2,000 balance for the next 15 days. Because of your payment, the interest drops to $5.75 for the remainder of the month. At the end of the month, you owe $12.94 in interest.
If you're buying a home
- Proof of income (such as a pay stub or federal notice of assessment)
- Investment statements
- Purchase offer for your new home
- Copies of the municipal and school taxes
- Copy of the listing if the purchase is being made with an agent
- Your buyer's proof of financing if you already own a home
- Current leases and statements of income and expenses if you're buying an income property
If you're building a home
- Proof of income (such as a pay stub or federal notice of assessment)
- Investment statements
- Contractor plans, specifications and estimates
- Copy of the building permit
- Copy of the preliminary contract
We may ask for more documents, depending on your situation.
You can check how much you have available on AccèsD.
On a web browser
- Log in to AccèsD.
- On the Overview page, under Cards, loans and credit, select Versatile Line of Credit.
- Select Account.
- See Amount available.
Download the Desjardins mobile services app
- Log in to AccèsD.
- Under Quick access, select Home.
- Scroll to see how much is available on your Versatile Line of Credit.
- Log in to the web version of AccèsD on your computer or the Desjardins mobile services app.
- Select Transfers, then Transfers between accounts.
- Select the account you want to make the payment from.
- Select Versatile Line of Credit as the destination account.
- Enter the amount of your payment and then select OK.
- Confirm your payment.
Get pre-approved
On AccèsD
Are you a member? Log in to AccèsD, select Home, then select your goal. When you apply for a mortgage pre-approval online, you'll get a quick response.
By phone
Monday to Friday: 8 AM to 9 PM
Saturday: 9 AM to 6 PM
Elsewhere in Canada:
1-844-626-2476 Canada-wide mortgage services. This link opens your phone app.
We can call you when it's convenient.