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Why can't I get any more money from my HELOC?

Many lenders reserve the right to reduce the amount you can borrow from your HELOC or to suspend your ability to borrow any more money from it.

The reasons include:

  • The value of your home goes down significantly
  • The lender reasonably believes you may no longer be able to make your payments based on a material change in your financial circumstances
  • You default on a material provision of your agreement (for example, by moving out of the house or taking out another loan on your home that could affect your lender’s ability to be repaid)

A lender can suspend or reduce your HELOC if the value of your home falls significantly, even if you have a good payment record. If your HELOC has been reduced or suspended, your lender must notify you in writing no later than three business days after the change and the notice should tell you why the lender took this action.