Mortgage Glossary

|Back To Glossary|

Credit Line

A credit line is usually secured by a collateral mortgage and is normally based on a floating rate.
You will have a maximum amount of money you can borrow. While your balance is zero ($0) you will pay no interest.
As you borrow money the lender will calculate how much interest you owe based on the daily balance. The lender usually debits your account once a month to pay the interest.
You decide when, and by how much, to pay down the principal owing.
These credit lines are very useful if you are doing renovations.

 

 

 

 

 

 

 

 

 

BC Mortgages.ca - Working with you - offering superior service from over forty lenders.

 

|