DIRECT Home Line of Credit

A home equity line of credit allows you to borrow by taking advantage of funds you have already invested in your home. The Home Line of Credit works like a regular line of credit, so you can choose when and how much you want to receive.

What is a home equity line of credit?

What is a home equity line of credit?

The maximum amount of credit is determined by a loan-to-value ratio. Good Direct is one of the last lenders in Canada to offer home equity lines of credit with a loan-to-value ratio of 80 per cent. However, Good Direct plans to reduce its loan-to-value ratio by up to 65% by December 2012 to meet Canadian financial regulations.

Characteristics :

  • No monthly fees
  • The amount of the Home Equity Line of Credit is $ 15,000
  • Your minimum monthly payment is interest only
  • The line of credit can be refunded at any time. Good Direct has a repayment plan that allows you to arrange regular fixed payments to speed up the repayment of your debt.
  • 24/7 access to your account online
  • You can reduce your limit online
  • The line of credit can be attached to a foreign check bank account (an account that is not an Good Direct account)
  • You can transfer your home equity line of credit to a free property
  • ING covers most of the valuation costs
  • If you and your partner are both owners, the home equity line of credit can be in both your names
  • The property must be your main residence

Simple Mortgage Calculation


The value of your home = $ 400,000

The amount still owing on your house = $ 250,000

The maximum available credit value is calculated using a loan-to-value ratio of 80%:

$ 400,000 x 80% = $ 320,000

However, you must also subtract the amount of your mortgage that remains to pay:

$ 320,000 – $ 250,000 = $ 70,000

The maximum amount of financing you can have on your home using an Good Direct Home Line of Credit is $ 70,000.

The final word

The Good Direct Home Line of Credit can be a useful source of funds 


  • Pay your high-rate debts, like your credit card or your loan on your car
  • Finance renovation projects for your home
  • Invest in an investment fund

The best is to discuss whether the Home Line of Credit is the best form of financing for you when talking with a mortgage broker who has experience. Remember, a home equity line of credit is always a debt that must be treated with discipline, including a plan to repay your debt entirely.