What is a TD Home Equity FlexLine?
Simply put, a TD Home Equity FlexLine lets you use the value of your home as collateral to give you a line of credit with a low interest rate. Apply just once, and you may be able to access up to 80% of the value of your home. It’s always available when you need it, through a variety of convenient options, 24/7 subject to the terms of your agreement.
What is a Revolving Portion?
Borrow up to 65% of the value of your home (less any previous charges) and get a variable interest rate that changes with TD Prime Rate.
As you pay down your outstanding balance, your available credit increases up to your credit limit subject to the terms of your agreement.
You can pay at your own pace without prepayment charges – pay as little as interest only, or pay any or all of your outstanding balance at any time.
What is a Term Portion?
You can put all or a portion of your outstanding balance from the Revolving Portion into a Term Portion (subject to minimum amounts) and establish regular payments at a fixed or variable interest rate for an open or closed prepayment term, depending on the rate you have chosen. If you opt for a Term Portion at set-up, you can borrow up to 80% of your home’s value – compared to the 65% in the Revolving Portion.
On a Closed Term Portion you can:
•Make one or more prepayments up to 15% of your original Term Portion amount every year without a prepayment charge.
•Increase your payment amount by up to 100% of your original regular payment.
•Increase your payment frequency: switch to one of our Rapid Pay Down options and possibly make up to an extra month’s payment every year
On an Open Term Portion you can:
•Prepay in full at any time, or increase your payment amount by as much as you’d like, without incurring a prepayment charge.
•Increase your payment frequency: switch to one of our Rapid Pay Down options and possibly make up to an extra month’s payment every year.
How much can you borrow?
It’s easy to calculate how much equity you have in your home and how much more you could borrow. If you have a current home valuation from a realtor or an appraiser, you can find out now.
1. What’s the value of your home?
2. How much is left on your mortgage?
3. Any other outstanding liens or charges against your home?
4. Add the outstanding mortgage amount (2) to the other liens and charges against your home (3) and subtract that total amount from 80% of your home’s market value (1)
Contributed by:
Candice Liberatore
TD Canada Trust Mobile Mortgage Specialist
Email: Candice.Liberatore@td.com
Tel: 604.836.6099
Fax: 844.822.7584
