Can I open a HELOC and not use it?

Can I open a HELOC and not use it?


One of the main advantages of a home equity line of credit is that it is used on an “as needed” basis. So if you don’t need the money right now, you can just have it sitting in the account. It’s not going to be charging you interest, but it will be available for you in the time when you do need it.

When you do start using the account, at that point you’ll be responsible to pay the interest rate on the amount that you’re using.

This is different from a home equity loan where you’re taking out a lump sum and are required to make payments composed of principle and interest from that moment on.

Those who are thinking about borrowing a HELOC should consider what type or kind of equity line of credit they need to have. Here are the two most common types of lines of credit.

  • Line of Credit Combined with a Mortgage
  • A Stand-Alone Home Equity Line of Credit

We can help connect you with the home equity loan providers in Canada. Pre-apply for a home equity loan now!

How useful was this post?

Click on a star to rate it!

Average rating 0 / 5. Vote count: 0

No votes so far! Be the first to rate this post.

We are sorry that this post was not useful for you!

Let us improve this post!

Tell us how we can improve this post?

Vlad Sherbatov

Vlad is the President and Co-Founder of Smarter Loans, Canada's original and largest loan comparison website. He is a passionate entrepreneur and business leader in the Canadian financial sector. He was selected as a 2019 Top 25 Leaders in Lending by the Canadian Lenders Association. Vlad is an author at Smarter Loans, and has been featured in publications like the Toronto Star and National Post, among others.