Infographic: Pay more than monthly interest on your home equity line of credit and save

From: Financial Consumer Agency of Canada

Infographic - Text version

The infographic illustrates how someone who pays well above the minimum payment will clear a home equity line of credit (HELOC) debt sooner and save money by paying less interest.

Image of a house and a pile of bills with 4 elements:

New roof: $12,000

New windows: $8,000

Paying off high-interest debt: $20,000

Balance owing: $40,000

Home equity line of credit situation #1

Floyd pays just above his monthly interest: $225/month

He’ll pay off his home equity line of credit in 22 years.

He’ll pay $20,700 in total interest.

Home equity line of credit situation #2

Floyd pays well above his monthly interest: $500/month

He’ll pay off his home equity line of credit in 8 years.

He’ll pay $6,600 in total interest.

Don’t let debt leave you behind

Make a clear budget for each project you plan to spend money on
Plan your payments with the Financial Goal Calculator on Canada.ca
Pay more than your required monthly interest payment

canada.ca/money

(This is for illustration purposes only. The end dates have been rounded to the nearest year. The above assumes a 4% interest rate over time. Be aware, however, that HELOC interest rates will probably change over time).

Page details

Date modified:: 2019-11-26

Language selection

Search

Infographic: Pay more than monthly interest on your home equity line of credit and save

Related links

Page details