Understanding the differences is the first step to choosing wisely.
A single lump-sum payment at a fixed interest rate creates identical monthly payments for the full loan term. No rate surprises, no draws to manage — just a simple, predictable obligation with a defined end date.
Best For: Home renovation, large planned expenses
A revolving credit line secured by your home equity — draw what you need, when you need it. Pay interest only on what you've actually borrowed. The line replenishes as you repay during the draw period.
Best For: Phased renovations, ongoing flexibility
Replace your existing mortgage with a new, larger loan and receive the difference as cash. When rates have fallen since your original purchase, you may simultaneously lower your monthly payment and access equity.
Best For: Rate improvement + large lump sum access
