What is a HELOC?

A home equity line of credit (HELOC) lets you borrow and pay back any amount of money, at any time, up to your approved limit. This is a revolving loan secured against your home.

What is a Seniors HELOC™?

The Seniors HELOC differs in one important way. Whereas most HELOCs require monthly interest payments from a separate bank account, the Seniors HELOC doesn’t require regular out-of-pocket payments. Instead, the payments can be capitalized, meaning the line of credit makes your interest payments for you. In this way, it’s somewhat similar to a reverse mortgage but at a much lower interest rate.


The other benefit of a Seniors HELOC is that you pull money out only when needed. Reverse mortgages require you pull out a big lump-sum at closing. In other words, in addition to having a lower interest rate, a Seniors HELOC calculates your interest on a smaller balance—saving you interest in two ways.


Seniors Equity is a preferred partner with Canada’s only national lender to offer this type of seniors-optimized HELOC.

How a Seniors HELOC is Different

#1) Savings:  The Seniors HELOC saves you up to 2.29 percentage points versus a 5-year reverse mortgage. That’s more than $11,000 of interest saved over five years, per $100,000 borrowed.
#2) Payment Capitalization:  A Seniors HELOC doesn’t require monthly interest payments. Simply deposit your income into the account each month, just like you would with a regular chequing account.
#3) Convenient Banking Included:  Enjoy unlimited online banking for just $9.95 per month. No-fee HELOCs are also available if you don’t need the interest capitalization feature.
#4) LTV Management:  HELOCs can be an excellent alternative to reverse mortgages, but only if they’re set up properly. We configure the Seniors HELOC to ensure you can safely refinance out of it later, and never have to worry about missing payments.