Are You Still Carrying Credit Card Debt? Let’s Fix That with a HELOC

If you’re a homeowner and still carrying credit card debt, you’re playing a losing game. Credit card interest rates in Canada hover between 19.99% and 29.99%—yes, you read that right. That’s up to 30 cents in interest for every dollar you owe, every single month.

Meanwhile, homeowners with available equity can often access a Home Equity Line of Credit (HELOC) at rates between 7% and 9%. That’s a potential interest savings of over 65%. In today’s economy, that difference is massive.

Let’s break down what this means, how it works, and what to watch out for.

💳 Credit Card Debt Is Crushing Canadians

According to Equifax Canada’s [Q1 2025 Market Pulse report] https://www.consumer.equifax.ca/about-equifax/press-releases/-/blogs/consumer-debt-rising-equifax-q1-2025, credit card balances reached a record high of $113 billion. The average Canadian carries over $4,000 in credit card debt—with interest piling up month after month.

A HELOC, on the other hand, is secured by the equity in your home, which allows for far lower interest rates and interest-only payments.

🏡 HELOC: Your Secret Weapon Against High-Interest Debt A HELOC functions like a giant credit card with lower rates. It gives you flexibility and control:

• Access money as needed (up to a pre-approved limit)
• Only pay interest on what you use
• Interest is often tax-deductible if used for investment purposes (check with your accountant)

Most banks and lenders require at least 20% equity in your home and a solid credit profile.

📉 Real-World Example:

• Credit Card Debt: $30,000 @ 29.99% = $750/month interest alone
• HELOC: $30,000 @ 7.25% = $181/month interest

That’s a $569/month savings—just by moving the debt.

🧠 HELOC Strategy Tips:

1. Don’t use a HELOC to buy more “stuff” — use it to consolidate and clear.
2. Set up automatic payments so you don’t just tread water.
3. Work with a broker (hi, that’s me 👋) to avoid pitfalls like variable rates or bank penalties.

⚠️ What to Watch Out For:

HELOCs are powerful but require discipline. You can rack up debt again if spending habits don’t change. And if rates rise, so does your payment.

📣 Final Word:

If you’ve got home equity, you’ve got cheaper money. Let’s put it to work the smart way.

Want to know if this works for you? Reach out and I’ll review your numbers privately and quickly.

Stuart Lessels

Your "Go To" Mortgage Broker for Georgian Bay and Beyond

(705) 445-1234

stuart@housenow.ca

Sources:

• [Equifax Q1 2025 Market Pulse] (https://www.consumer.equifax.ca/about-equifax/press-releases/-/blogs/consumer-debt-rising-equifax-q1-2025)
• [Government of Canada on HELOCs](https://www.canada.ca/en/financial-consumer-agency/services/mortgages/home-equity-lines-credit.html)

From stargazing on the shores of Georgian Bay… to night skiing down Blue with the lights of Hollywood (okay, Collingwood) twinkling in the distance... from quiet canoe paddles to loud backyard BBQs — this is Canada. And this is home.

We live in one of the most beautiful, welcoming, and peaceful nations on Earth — and it’s something I try never to take for granted. In a world full of uncertainty, we get to live in a place where healthcare is a right, where our kids grow up safe, and where we can build a future with dignity and freedom.

From the lakes and forests of Ontario, to the mountains of the west and the rolling coastlines of the east — every corner of Canada has its own magic. And today, we celebrate that. Our identity. Our unity. Our home.

Wishing you a wonderful Canada Day, however you choose to celebrate it. And if your summer plans include a little dreaming about your next home, I’m just a phone call away. But for now? Fire up the grill and wave that flag with pride!

Picture this: you wake up with your coffee, step out onto a quiet deck, and watch the mist rise off the lake. The dream of owning a cottage — a place to relax, recharge, and enjoy everything Ontario summers have to offer — doesn’t need to stay a dream.

In this week’s post, we’re diving into what I call “The Cottage Mortgage Hack” — a smart approach to making vacation property ownership more affordable and attainable. Let’s break it down.

🏡 Step 1: Use Your Existing Home Equity

If you've owned your home for several years, chances are you’re sitting on a decent amount of equity. Many homeowners can access this equity through a Home Equity Line of Credit (HELOC), second mortgage, or full refinance. We structure this carefully to avoid disrupting your current mortgage rate if it’s still locked in below current averages. This method helps you pull together the down payment for a cottage — without needing to rely on personal savings alone.

📈 Step 2: Rental Offset Opportunities

What if your cottage could help pay for itself? Some lenders allow you to use projected rental income (e.g., short-term Airbnb rentals or seasonal leases) to support your mortgage application. This “rental offset” reduces your debt service ratio, helping you qualify even if the full carrying cost would be high. We’ll show you how this works and run the numbers in advance so you know where you stand.

👨‍👩‍👧 Step 3: Co-Ownership Options 

Not everyone wants full-time access to their cottage — but that doesn’t mean you can’t own one. More Canadians are choosing to co-own cottages with siblings, friends, or trusted partners. This lets you split both the upfront and ongoing costs. With the right agreement in place, this can be a stress-free way to enjoy summer living without overcommitting financially. There are even lawyer-reviewed templates available to make this simple.

📃 Step 4: Use a Second Home Mortgage

Certain lenders offer “second home” or “vacation property” programs that come with lower down payment requirements and more flexible income rules — especially when the cottage is for personal or family use. These programs aren’t as widely advertised, but they exist, and we know how to find the ones that fit. We’ll handle the matching, paperwork, and approvals. 💡 BONUS: Bridge Financing or Vendor Takebacks  In some cases, sellers of cottages are open to short-term financing arrangements while you wait to finalize a refinance or line of credit on your existing home. Known as “vendor takeback” or VTB mortgages, these can be negotiated to keep deals moving when timing matters.

🔁 Putting It All Together  What you really need is someone to stitch these options into a smart, low-stress strategy. That’s what I do every day.

Whether you’re dreaming of summer barbecues, family paddleboarding trips, or just a peaceful dock to call your own — I’ll show you how to turn your equity into experiences.

Let’s build your summer plan together.

Stuart Lessels 

Your “Go-To” Mortgage Broker for Georgian Bay and Beyond

📧 stuart@housenow.ca

📞 705-445-1234