With the recent actions of TD Canada Trust, being the last to increase their HELOC rates to Prime + 1% from Prime effective Nov 16/09, it is important to know the options available to consumers. If a significant balance is owed on your HELOC and you have minimal disposable income to pay it off, it makes sense to convert the balance to a variable mortgage at a lower rate – chances are the mortgage rate would compound semi-annually rather than a line of credit at monthly. As a result, you can win both ways, reduce your rate while still in a variable product and a compounding benefit that will save you a few dollars over the long run.
As they say, “when you have lemons, make lemonade!”
Principal Broker – Vice President
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