Getting a loan in Canada while using a HELOC

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August 30, 2021

by a searcher in Toronto, ON, Canada

Going through my financials, I'm considering tapping into a HELOC to get the necessary equity funding to make an acquisition. Question is, will this affect a bank's willingness in extending a loan to help me complete the purchase (due to my overall leverage), or would they not care? Question is for Canada.

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Reply by a searcher
from University of Toronto in Toronto, ON, Canada
Most HELOC’s are just revolving lines of credit and you draw on them as a bank account in cash. Your bank has already allowed you that credit based on the value of your house so what you do with that cash is your call.

Why are you tapping HELOC and not get raising money based on the business. If you can’t sell a debt or equity raise on the business then you should question the business itself.
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