While there are some similarities to a mortgage, a HELOC allows its users to only use the amount of money needed, and only paySign up to receive the daily top stories from the Financial Post, a division of Postmedia Network Inc.By clicking on the sign up button you consent to receive the above newsletter from Postmedia Network Inc. You may unsubscribe any time by clicking on the unsubscribe link at the bottom of our emails. Postmedia Network Inc.
: You’re able to borrow money whenever you want, repay it and reborrow the funds later on, up to your credit limit. With a HELOC on its own, you take out a HELOC in addition to your mortgage. The HELOC doesn’t have to be with the same lender, and the mortgage and HELOC are separate from one another. This type of HELOC can be ideal if you want to borrow funds for a one-time home renovation project, but don’t anticipate needing more funds later on.The second type of HELOC is a one combined with a mortgage. This is known as a readvanceable mortgage, but can go by a different name, depending on the lender.