Calgarypuck Forums - The Unofficial Calgary Flames Fan Community - View Single Post - Re-Financing your $Property

V · 06-23-2006, 11:47 AM

I didn't refinance my property, but I went to ATB for a HELOC. They offer them at 0.51% below prime for the first year, and then at prime after that. Only interest payments if you want. They gave me 80K. I immediately turned around and purchased a property for 237K. Took 60K from the HELOC for the downpayment, and the rest of the HELOC will be used for expenses on the property that can't be covered by rent. I have another unsecured LOC through TD for 30K, so I'll be using that credit to pay the interest on the HELOC, and the HELOC to pay the interest on the LOC. The interest is tax deductible, and I don't have to spend a penny of my own finances. Gotta love it. I don't think the market's done yet. I sure hope not, at least. Already, the house is worth about 10K more than I paid for it, and I don't take possession until August 1.

But yeah, back on topic, most banks will only give you a HELOC for up to 75% of your house's appraised value. So if they appraise you at 350K, and you have 200K left on your mortgage they'll only give you a maximum of 62.5K.

So I guess it depends on how much you re-financed, whether or not you'll be able to get a HELOC.

06-23-2006, 11:47 AM	#2
V Franchise Player Join Date: Feb 2005 Exp:	I didn't refinance my property, but I went to ATB for a HELOC. They offer them at 0.51% below prime for the first year, and then at prime after that. Only interest payments if you want. They gave me 80K. I immediately turned around and purchased a property for 237K. Took 60K from the HELOC for the downpayment, and the rest of the HELOC will be used for expenses on the property that can't be covered by rent. I have another unsecured LOC through TD for 30K, so I'll be using that credit to pay the interest on the HELOC, and the HELOC to pay the interest on the LOC. The interest is tax deductible, and I don't have to spend a penny of my own finances. Gotta love it. I don't think the market's done yet. I sure hope not, at least. Already, the house is worth about 10K more than I paid for it, and I don't take possession until August 1. But yeah, back on topic, most banks will only give you a HELOC for up to 75% of your house's appraised value. So if they appraise you at 350K, and you have 200K left on your mortgage they'll only give you a maximum of 62.5K. So I guess it depends on how much you re-financed, whether or not you'll be able to get a HELOC.