Maximum Secured Line of Credit limits to drop from 80% to 65% Loan to Value. Although none of the 4 new Mortgage Rules introduced this past July 2012 had anything to do with reducing the limits on a Home Equity Line of Credit (HELOC’s), this rule change is coming soon. All banks must comply by the end of their fiscal year, which for most is Oct 31/12. Maximum Secured Line of Credit limits will be dropped from the current 80% of the value of one’s home to 65% of the value.

If you want a HELOC or readvanceable mortgage equalling 66%-80% of your home value, be ready to act soon.
RBC and TD have already cut back on their HELOC to the new maximum of 65%. As a Brampton Mortgage Broker with access to several lenders, we can still offer options to the 80% mark but not for much longer!!! If you know someone in need for this very flexible product, have them contact us quickly.

Home Equity Line of Credit