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Home Equity Line of Credit
By Alterna Team
May 01, 2023

Start early to leverage the power of compounding

The sooner you make it a priority to invest for your retirement goals, the better.

There’s a scene in Doc Hollywood where Michael J. Fox, the fresh med school grad, is readying to airlift a young patient out of the small town for emergency heart surgery. Just before liftoff, the aging local doctor shows up and hands the boy a can of pop – Sip, burp, everybody go home.

In its 2022 Federal Budget, the Canadian Government introduced the Tax-Free First Home Savings Account (FHSA), a new registered savings plan designed to help Canadians save for their first home.

So, you’ve come into some extra money, possibly an inheritance windfall or a raise in pay. And while you want to spend it on a new hot tub, you’re determined to make a more prudent financial move. Should you put that extra money toward paying down your mortgage, or should you invest it?

Inflation in Canada and in the U.S. remains muted, and interest rates remain near historical lows. Still, inflation can bite fixed-income investors.

A home equity line of credit (HELOC) or secured line of credit (SLOC) is a flexible way to borrow money against the equity you have built up in your home. It is a revolving line of credit, meaning you can borrow, repay and borrow again as long as you stay within your credit limit.