A home equity line of credit allows you to borrow money against your home, and while this is a great way of tapping into the value of your home, you do have to be cautious about your spending. You could use the money to go on a fancy vacation or to buy the latest electronics but these are not good ideas and there are better ways of using a HELOC, including the following:

Home Improvements

Updating your home through improvements and renovations is always a good idea because they add value to your home. If you have a project you’d like to complete, tapping into your home’s equity is a great way of financing it and a sure way of increasing your property’s value. You can add a pool, renovate your kitchen or install a new bathroom, so if this is what you have in mind, using your HELOC would be very smart.

An Emergency Fund

Life is unpredictable and if you ever face financial troubles or uncertainty, your home’s equity can come in handy. It can serve as a low-interest alternative to credit cards and other types of loans, so you can use it for emergencies. It’s important to note that it would be difficult to qualify for a home equity line of credit after an emergency arises, so it’s better to have one in place.

Refinancing Your Debt

A HELOC is a great way of enjoying lower interest rates, especially if you have a large amount of high-interest debt. Personal loans and credit card debt are unsecured, which is why they come with such high-interest rates but because your HELOC is secured by your house, you will be able to obtain much lower interest rates. Some people will save thousands of dollars simply by refinancing high-interest loans into a HELOC.


College and university are expensive but a HELOC can help you pay for these costs. Whether you are sending your child to college or want to go back to school yourself, a HELOC is a smart way of paying for tuition costs.

Long-term Investments

You can use your HELOC to invest in stocks or even the real estate market but there are always risks to this, so you must do your research beforehand. Doing some homework will help you determine whether or not this is a good step as a homeowner, so it’s best not to jump into it fast. Overvaluing a property or underestimating the costs involved would be problematic in any type of investment, so consider all of your options.

Benevolent Bancorp can help you with all of your mortgage needs. We offer exceptional rates and our private mortgage brokers can help you with a home equity line of credit, 2nd mortgages, pre-approved mortgages and mortgages for those who are self-employed. If you want to work with the best mortgage brokers and have been searching for brokers near me in the Surrey area, give us a call today!