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.