HELOC Vs Refinance in Canada

[Ammanuel S.]

What’s everyone opinions on HELOCS vs Refinancing? I live in Canada, and would like to use one of these methods on a mortgage free home with intent to invest in Real Estate with the money.

With HELOCs right now in Canada the interest is prime + 0.2 (4.15% total currently) with a 25 year amortization period. Some brokers have told me HELOCs are better; while my banker said refinance is. What’s everyone’s opinion on these methods.

[Hai Loc]

Originally posted by @Ammanuel S.:

What’s everyone opinions on HELOCS vs Refinancing? I live in Canada, and would like to use one of these methods on a mortgage free home with intent to invest in Real Estate with the money.

With HELOCs right now in Canada the interest is prime + 0.2 (4.15% total currently) with a 25 year amortization period. Some brokers have told me HELOCs are better; while my banker said refinance is. What’s everyone’s opinion on these methods.

If you need all the cash right away from the refinance with a low interest then that is the way to go

HELOC even with a higher interest is ok if you don't need all the cash or all at once..