1. What is TD Home Equity Line of Credit?

A TD Home Equity Line of Credit (HELOC) is a revolving credit facility that allows Canadian homeowners to borrow against the equity in their home. It provides flexible access to funds with variable interest rates.

2. How Does the Calculator Work?

The calculator uses the standard loan payment formula:

Where:

• \( PMT \) — Monthly payment (CAD/month)
• \( P \) — Principal amount (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 pay off a loan over a specified term, accounting for compound interest.

3. Importance of HELOC Payment Calculation

Details: Accurate payment calculation helps homeowners budget effectively, understand affordability, and make informed decisions about borrowing against home equity.

4. Using the Calculator

Tips: Enter the principal amount in CAD, annual interest rate as a percentage, and loan term in years. All values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: What is the current TD HELOC interest rate?
A: TD HELOC rates are variable and typically based on TD's prime rate plus a margin. Current rates should be verified with TD Canada Trust.

Q2: How is HELOC different from a mortgage?
A: HELOC is revolving credit (like a credit card) while a mortgage is installment credit with fixed payments. HELOC offers more flexibility in borrowing and repayment.

Q3: What are the typical HELOC terms in Canada?
A: HELOCs typically have 10-25 year terms with interest-only payment options during the draw period, followed by amortization periods.

Q4: Are there fees associated with TD HELOC?
A: There may be appraisal fees, legal fees, and annual fees. TD often waives some fees during promotional periods.

Q5: How much equity can I borrow against?
A: Typically up to 65% of your home's appraised value minus your outstanding mortgage balance, following Canadian lending regulations.