Quick overview of the Home Trust Equityline Visa card
The Home Trust Equityline Visa card isn’t your typical credit card. It’s a home-secured revolving credit line that allows you convenient access to your credit line with a credit card. But while it offers some of the advantages of both a Home Equity Line of Credit (HELOC) and a credit card, there are significant drawbacks you’ll want to be aware of.
Who’s the Home Trust Equityline Visa for?
As a home-secured revolving loan, the Home Trust Equityline Visa is best suited for borrowers who want to access their home equity to finance major expenses such as home renovations or consolidate high-interest debt.
That said, I don’t recommend this product if you can qualify for a standard HELOC at a bank or credit union. While the Equityline’s interest rate, ranging from 8.99% to 15.99%, is lower than that of a typical credit card, it’s significantly higher than most HELOCs. If you just want a credit card and don’t wish to put your home up as security, this is not the product for you.
Pros and cons of the Home Trust Equityline Visa card
Pros
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No annual Fee
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No foreign transaction fees
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Access to higher credit limits than a regular credit card
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Make major purchases with the convenience of a credit card
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Includes a 21-day interest-free grace period on purchases made with the card
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Lower interest rates than a standard credit card
Cons
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You must put your home up as security
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Higher interest rates than a HELOC
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No welcome offer or rewards earned on the credit card
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Account set up fee of up to 3% of the approved credit limit amount
Home Trust Equityline Visa key benefits
The Home Trust Equityline Visa offers modest benefits, which is to be expected from a credit card with no annual fee.
- High credit limits: While you must put up your home as security, the Home Trust Equityline allows you to access higher credit limits than a standard credit card. According to the company website, you can borrow between $20,000 and $1,000,000, depending on your approved credit limit.
- No foreign transaction fees: Most credit cards charge a fee whenever you purchase in a foreign currency, typically 2.5%. Whether traveling abroad or shopping online, you won’t incur a foreign transaction fee with the Home Trust Equityline Visa.
- Emergency card and cash replacement: If your card is lost or stolen or you need an emergency cash advance, help is available 24/7.
- Digital wallet: Your Home Trust Visa card can be added to major digital wallets, including Apple Pay, Google Pay or Samsung Pay.
- Visa's Zero liability: Credit card fraud has become all too common. With Visa’s Zero Liability Policy, you're not held liable if someone makes an unauthorized purchase using your credit card number.
Home Trust Equityline Visa insurance coverage
- Purchase security: Items you purchase with your Home Trust Equityline Visa are insured against theft or damage for 90 days after purchase.
What people have to say
While researching this article, I perused online forums related to the Home Trust Equityline Visa product to see what others were saying about it. It received positive reviews from some self-employed individuals concerned they could not qualify for a standard HELOC from an A lender, such as a bank. Home Trust is primarily a B lender, meaning they are generally more flexible when granting credit. That said, most online reviews were negative and focused on the Home Trust Equityline’s high interest rates compared to standard HELOCs.
Home Trust Equityline Visa eligibility criteria
The Home Trust Equityline Visa has much different eligibility criteria than a regular credit card because it’s essentially a home-secured revolving credit line. This means that in addition to meeting standard borrowing criteria, such as credit score and income requirements, you must have sufficient equity in your home to qualify.
Additionally, you must meet the following conditions to be eligible:
- Be a permanent Canadian resident
- Be of the age of majority in the province where you live
- You cannot currently be in bankruptcy
- Annual income of at least $15,000
Note: The Home Trust Equityline Visa is unavailable in Quebec.
Is the Home Trust Equityline Visa worth it?
The Equityline Visa is worth considering if you cannot qualify for a HELOC due to previous credit issues or an inability to meet the lender's guidelines. Its inclusion of a Visa card makes it a convenient way to spend.
However, for most borrowers, the Home Trust Equityline Visa is not worth it. If you want to use your home equity to secure a revolving credit line, your best bet is to take out a HELOC through a major bank or credit union. You’ll ensure a lower interest rate and avoid the Equityline’s costly setup fee, which can be as high as 3% of the credit limit. On a $200,000 Equityline, that could be as high as $6,000.
Colin Graves is a Winnipeg-based financial writer and editor whose work has been featured in publications such as Time, MoneySense, MapleMoney, Retire Happy, The College Investor, and more. Before becoming a full-time writer, Colin was a bank manager for over 15 years.
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