Home Trust Equityline Visa Review
The Home Trust Equityline Visa is a special kind of credit card called a “HELOC”: a “home equity line of credit.” For this type of credit card a home is used as security, which means only homeowners are eligible for the card.
The security provided by a home means that HELOCs usually have much lower interest rates than regular credit cards. Another big advantage that HELOCs have over traditional credit cards is the size of the credit line that they can provide. The amount of credit you qualify for depends on several factors: how much equity you have in your home, what its appraised value is, how much money you earn, what your outstanding debts are, and your credit score.
At a Glance:
- Credit line up to $100,000
- Interest rates are between 5.99% and 11.99%, depending on the value of your home and credit score
- Low monthly payments
- Earn 1% cash back on every purchase
- Gold Visa benefits
- Interest paid only on the credit you use, not the entire line
- No annual fee, but high setup fees
The Equityline Visa is great for those that need a high line of credit for major projects like home improvements/repairs, or for opening up a business. The card can also be used for debt consolidation, as its low interest rates make it ideal for paying off high-interest loans or credit card debt. The card allows you to access cash 24/7 at Visa or Visa Plus ATMs, or by writing a convenience cheque. Home Trust Visa offers convenient payment options using Pay Bills with Visa or your bank’s phone and web banking service.
The card, however, is not without its drawbacks and limitations. Home Trust Visa places a mortgage on your home as collateral for your credit line. This means that if a cardholder defaults on their payments, the lender can foreclose on their home.
The card also requires setup fees not associated with traditional credit cards, including a legal fee of $350-$780 and a Title search fee of $35. There is also a mortgage discharge fee if/when the account is closed. This fee varies by province, ranging from $0 to $365.50 and is subject to change at any time. But these setup fees may not bother you if you plan on using this card for an extended period of time, especially given that there is no annual fee.
Why We Like It:
- High credit limit allows you to finance major expenditures
- Very low interest rates
- Benefits of a gold Visa card: auto rental collision/loss damage insurance, zero liability policy for fraud protection, emergency card and cash replacement, access to cash at Visa or Visa Plus ATMs, and secure access 24/7 to your latest account information with Home Trust Visa Online
Is It Worth It?
We recommend the Home Trust Equityline Visa as a HELOC. It is a basic gold Visa with the substantial benefit of a line of credit up to $100,00, and low interest rates. We consider those to be the primary advantages of the card, though the added benefits of no annual fee and 1% cash back also give it an edge.