Personal Finance

Increasing HELOC limits

  • Last Updated:
  • Jul 29th, 2020 11:02 am
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[OP]
Newbie
Jul 12, 2019
13 posts

Increasing HELOC limits

So just a brief overview of my current situation:
I bought my condo in 2016 and got a HELOC along with it at the time. In 2018, I was unemployed due to a health issue setback. I started to bounce back in 2019 with income that was much lower than my 2017 income. I have been employed full-time since May, 2020 (even though I am still finishing up my probation) and things are looking good and stable.

At the end of 2019, I renewed my mortgage, but when I asked for an increase to my HELOC, the bank (TD) stated that due to my varying income in the last 2 years, they could not give me an increase at the time. I have never missed a payment on my mortgage, have an excellent credit score, and my only debt (outside my mortgage) is my HELOC (used less than 50% of it).

Reason for increase in HELOC: Want to do a few renovations to my unit.

Question:
  1. Would the banks be more lenient in taking my request for an increase to my HELOC now due to the current COVID situation?
  2. If so, what are questions I should be asking when negotiating this?
  3. What are current rates on HELOC (as of July 29th)


Thanks for your help.
2 replies
Deal Guru
User avatar
Mar 9, 2007
14955 posts
11403 upvotes
Think of the Childre…
Lenient on HELOC applications? From what I've heard...they are more strict now and doing more back-office checks.

WOULD SOMEBODY THINK OF THE CHILDREN!!!
Sr. Member
Jul 18, 2020
753 posts
1217 upvotes
No, it is going to be harder not easier especially now to acquire additional credit. And it all depends on your income and debts, plus you are going to pay for additional assessment fees on your property when you ask for a heloc increase . TD heloc rate is prime+0.6% which is 3.05, other banks only charge prime+0.5%. I think if you are not taking out equity for investment to offset interest expense, you will be better off to do a mortgage refinance as oppose to heloc and the rate will be cheaper.

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