A home equity line of credit is a product that uses the equity in your home to secure a line of credit. Because your home is used as security the rate is typically much lower than an unsecured line of credit. The HELOC portion of your mortgage cannot exceed 65% of the value of your home although the total mortgage on your home can be 80% of the value of your home. If 65% is sufficient for you that is great and if not you can top up the HELOC with a portion that is either in a fixed or variable product to a total of 80% of the value of your home. A line of credit is a useful tool that attaches to your bank account allowing for easy access to the funds. A HELOC is an open product meaning there is no pay out penalties and the funds can again be advanced again as long as you have credit available. What you pay today is available to you tomorrow. Minimum monthly payments are interest only on the outstanding balance.