Like a personal line of credit, a HELOC (Home Equity Line of Credit) is linked to your Daily Chequing Account, however is registered as a mortgage and secured by the equity in your home, so you can apply for a larger amount at a lower interest rate. A HELOC is primarily used for renovations, debt consolidation and other large expenses. It is also useful for current and future purchases, and has flexible repayment terms. Just like the personal line of credit the interest rate fluctuates with the Prime Rate. At any time you have the option of locking in all or a portion of your outstanding HELOC balance into a fixed interest rate for a closed term of 1-5 years. This establishes regular fixed payments (subject to minimum amounts) in order to protect yourself from future rate increases. Once the termed-out portion is paid off, we can add that available balance right back into your HELOC again!