What is HELOC

HELOC is a bit different than other equity. They are a revolving source of funds, much like a credit card, that you can access as you choose.


You only have to be qualify and be approved. Once you are approved, you can access whenever you want.

To be qualified, you will need:

a minimum down payment or equity of 20%

Before being approved, you are also required to show that you have:

  • a good credit score
  • proof of sufficient and stable income
  • acceptable level of debt compare to your income


You only have to pay back the interest on what you borrowed.

Secondly, payment are interest-only, unlike typical mortgage where your payment is a combination of principal plus interest. You are still responsible for making principal payment but it is up to you to decide when and at the pace to do so.

Finally, the interest rate is much lower than regular line of credit usually but still higher than variable-rate mortgage.