HELOC vs mortgage refinance
Compare revolving access to equity with changing the mortgage borrowing arrangement.
The key difference
A home equity line of credit provides revolving borrowing secured by your home. Refinancing changes your mortgage borrowing arrangement and may release equity as a lump sum. Both need a repayment plan; available equity alone does not establish eligibility.
| Consideration | HELOC | Mortgage refinance |
|---|---|---|
| Access to funds | Borrow and repay within an approved credit limit. | Arrange a new mortgage amount and repayment terms. |
| Costs to request | Interest, setup fees, and minimum-payment rules. | Interest, setup fees, and any charge for ending the existing mortgage. |
Questions to take to the lender
- What will reduce the principal, beyond paying the interest?
- Ask for all setup and early-exit costs before comparing offers.
Explore the published products
Sources and scope
General information for comparing options. Product terms and individual eligibility must be confirmed with the lender.
Continue exploring
Renew with your lender vs switch lenders
Compare a renewal offer against switching costs and another lender’s conditions.
Sell before the term ends: repay vs port
Compare ending a mortgage with the possibility of transferring it to another property.