Heloc on primary residence

Canadian Real Estate
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Heloc on primary residence

Alex Von Maltzahn
Member since 2015 · 1 post · 1 vote

Anyone get a home equity line of credit? Did it affect the amount you have to pay for home insurance?

am considering heloc but am hoping it won’t affect my insurance I have to pay

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Account Closed
Rental Property Investor · Port Coquitlam, BC · Member since 2017 · 520 posts · 527 votes
3y

@Alex Von Maltzahn welcome to BP.   There should be no impact on your home owners' insurance.  Insurance is not tied to the financing you have in place on your residence. 

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  • Account Closed
    Rental Property Investor · Port Coquitlam, BC · Member since 2017 · 520 posts · 527 votes
    3y

    @Alex Von Maltzahn welcome to BP.   There should be no impact on your home owners' insurance.  Insurance is not tied to the financing you have in place on your residence. 

    2Reply
  • Stevo Sun
    Calgary, AB · Member since 2021 · 327 posts · 176 votes
    3y
    Quote from @Alex Von Maltzahn:

    Anyone get a home equity line of credit? Did it affect the amount you have to pay for home insurance?

    am considering heloc but am hoping it won’t affect my insurance I have to pay


     Yep we have a Heloc, doesn't impact insurance. 

    1Reply
  • John M.
    Investor · Fairfax, VA · Member since 2015 · 1k+ posts · 801 votes
    3y

    No impact.  The heloc is an important part of every investor's tool kit.

    0Reply
  • Anthony Therrien-Bernard
    Realtor · Calgary, Alberta · Member since 2018 · 291 posts · 132 votes
    3y

    As everyone already said, no impact on insurance and definitely useful as an investor

    0Reply
  • Roy Cleeves
    Residential Real Estate Broker · Kitchener, Ontario · Member since 2014 · 687 posts · 370 votes
    3y

    Hi Alex

    Your HLOC is an excellent way to have flexible funds available for opportunities without locking into a long term or a set rate.  It will not affect the cost of your insurance.  If it does then change insurance companies.

    1Reply
  • Chris Yarish
    Member since 2023 · 6 posts · 0 votes
    3y
    In Canada, a significant number of the large banks have made it so that A HELOC will affect your TDSR, even with a zero balance.

    So, no impact on insurance, but a definite impact on the debt servicing front.
    0Reply
  • Jill F.
    Investor · Akron, OH · Member since 2016 · 2k+ posts · 4k+ votes
    3y

    It may impact your credit score which can in some cases impact what you pay for insurance-- but I would be surprised if a HELOC was a big enough hit to cost you more in insurance

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