How to access the Scotia Total Equity Plan If the prime rate changed to 5%, your rate would change to 6%. In this case, if the prime rate was 5.45% then your rate would be 6.45%. For example, your variable rate might be set at Prime + 1.00%.
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Variable interest rates are expressed as the prime rate plus or minus some percentage. The Scotiabank Total Equity Plan is available with a variable interest rate, which will vary with changes to the Scotiabank Prime Rate. This large amount, combined with the lower interest rates than regular lines of credit, makes HELOCs an attractive option for larger purchases. In this example, the $100,000 you can access through your HELOC only amounts to 20% of the value of the home.Īs the example above shows, you may be able to access a large sum if you’ve been diligently paying off your mortgage and growing your equity.
To be sure, simply divide the HELOC by the total value of your home: Next, you’ll need to make sure the $100,000 doesn’t exceed 65% of the value of your home. Once you subtract the $220,000 outstanding mortgage, you’ll see that the maximum possible size of your HELOC is $100,000. The total maximum amount you can borrow, including both your mortgage and your HELOC, is: However, the total home debt (your mortgage + your HELOC) can’t exceed 80% of the value in your home.įor example, let’s say the value of your home is $400,000, and you have a $220,000 outstanding mortgage. With the Scotiabank Home Equity Line of Credit, you can borrow up to 65% of the value of your home. How much can I borrow on the Scotia Total Equity Plan? You can open a home equity line of credit through Scotiabank, and this product is called the Scotia Total Equity Plan (STEP). You can use a HELOC for home renovations, down payments on vacation homes, post-secondary school tuition, to pay down high-interest debt, and other major life events. A HELOC is a revolving line of credit, meaning you don’t need to use the entire balance at once, and you can repay it at your own pace. Because an asset secures it, the interest rate is often lower than unsecured lines of credit (such as credit cards, for example). The maximum size of your HELOC is limited by how much equity you have in your home. One of these options is to open a home equity line of credit or HELOC.Ī home equity line of credit or HELOC is a revolving line of credit that uses the equity in your home as collateral for the loan. If you want to take advantage of the equity in your home without selling it, you have options. Most of those uses require you to sell your house to access your equity, but not all! You can use your home’s equity in several ways, including to fund your retirement or purchase your next home. Equity is the difference between the home’s value and the outstanding mortgage. One of the most significant upsides to buying a home (besides having a place of your own) is that every month when you make your mortgage payment, you’re building equity in your home.
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