Home Equity Line Of Credit is a useful short-term financing alternative for people who can repay the interest and loan in the near future. Can also be consolidated with a mortgage or be used as a mortgage on its own.

With a HELOC, you can acquire funds as required up to an amount, although the interest is restricted to the prime rate and can vary at any time. Furthermore, you have the flexibility of repaying as much of the loan as you desire or making interest-only payments.

Nevertheless, this is a type of callable mortgage which means that the lender can demand to be paid in full at any time, and there exists a significant risk of non-renewal or cancellation.