What's the difference between a mortgage and a Line of Credit?
Usually the biggest difference between a mortgage and a line of credit is flexibility. A mortgage is very structured, with set payments, a set term, and a set timeframe to pay it off. There are often some extra features offered for a mortgage, which provide some flexibility, but they vary with each lender. Clients often prefer a mortgage because it helps create a routine, and they know what to expect.
A Line of Credit usually offers more flexibility, but can sometimes be harder to qualify for. The line of credit will have a limit, like a credit card, and the client can use all of it or none of it. You only pay interest on what you use. A line of credit also allows you to make bigger monthly payments to pay it down quicker, or make smaller payments to just cover the interest.
At Approved Mortgage we have access to both, and can help you decide on which one would be best for you.
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600-602 12th Avenue SW
Calgary, AB
T2R 1J3
Toll Free 877.284.4009
P 403.284.4000
F 403.284.4010
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