Cash out refi or HELOC

[Ashley Cann]

I own a duplex with about $300,000 and owe about $200,000 on it. I would like to access the equity and would like to run my options by the BP community

Option 1: HELOC

Get a HELOC from a local credit union who will loan up to 80% LTV. Looking into this option currently.

Option 2: cash out refi

Cash out equity and change the loan to a 30 year mortgage, which would decrease the mortgage significantly and increase cash flow each month.

I don't know the Canadian tax issues with the cash out refi. And if the money sat in my account too long I might be tempted to just pay off our unsecured LOC which is $30,000 at 4.99%.