Home Equity Line Of Credit Calculator Canada Td

Home Equity Line of Credit Payment Formula:

\[ PMT = P \times \frac{r \times (1 + r)^n}{(1 + r)^n - 1} \]

Monthly Payment (PMT):

Total Payment:

Total Interest:

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1. What is a Home Equity Line of Credit?

A Home Equity Line of Credit (HELOC) is a revolving credit facility that allows homeowners to borrow against the equity in their home. TD Canada Trust offers HELOCs with flexible repayment options and competitive interest rates.

2. How Does the Calculator Work?

The calculator uses the standard amortization formula:

\[ PMT = P \times \frac{r \times (1 + r)^n}{(1 + r)^n - 1} \]

Where:

\( PMT \) — Monthly payment (CAD/month)
\( P \) — Loan principal (CAD)
\( r \) — Monthly interest rate (annual rate ÷ 12, decimal)
\( n \) — Number of months (years × 12)

Explanation: This formula calculates the fixed monthly payment required to fully amortize a loan over the specified term, including both principal and interest components.

3. TD Canada HELOC Features

Details: TD's Home Equity FlexLine combines a mortgage with a line of credit, offering flexibility to borrow, repay, and re-borrow as needed. Interest rates are typically variable and based on TD's prime rate.

4. Using the Calculator

Tips: Enter the loan amount in CAD, annual interest rate as a percentage (e.g., 5.25 for 5.25%), and loan term in years. The calculator will show your monthly payment, total repayment amount, and total interest paid.

5. Frequently Asked Questions (FAQ)

Q1: What is the current TD HELOC interest rate?
A: TD's HELOC rates are variable and typically range from prime + 0.5% to prime + 1.5%, depending on creditworthiness and loan-to-value ratio.

Q2: How much equity can I borrow with TD?
A: TD typically allows borrowing up to 65% of your home's appraised value, minus any outstanding mortgage balance.

Q3: Are there fees for TD HELOC?
A: Yes, there may be appraisal fees, legal fees, and annual fees. TD often waives some fees during promotional periods.

Q4: Can I make extra payments without penalty?
A: Yes, TD HELOCs generally allow extra payments and early repayment without penalties due to their revolving nature.

Q5: How does TD HELOC differ from a traditional mortgage?
A: HELOCs offer flexible access to funds (like a credit card) while mortgages provide a lump sum with fixed payments. HELOC interest may be tax-deductible for investment purposes.