Home Equity Line of Credit (HELOC) changes
Important information:
Please read the following so you know where to look to see how much is owing on your HELOC.
Snapshot view
• HELOCs are now set up as a loan account—they are listed as Home Equity Line of Credit Revolving Accounts.
• All HELOCs must be linked to an ATB deposit account. We have created a new account—listed as a HELOC Account under
Deposit Accounts—for each HELOC that was not linked to an ATB chequing account.
• Everything else related to your HELOC—authorized limit, interest rate, and how interest is calculated and charged—
has stayed the same.
• Just as before, if there is not enough cash in your chequing account to cover your transactions, it will automatically draw
funds from your HELOC.
• Check Loan Accounts on your monthly ATB statement, in ATBOnline™, or in telephone banking to find out how much
of a HELOC you have used, if you use it.
We’re here to
help you...
Checking how much is owed on your HELOC
Everything about your HELOC—your credit limit, interest rate, and how interest is calculated
and charged—is the same. The main difference is how you check the amount you owe if
you’ve been using your credit.
Before the upgrade, some HELOCs were set up to be linked to an ATB chequing account and
the HELOC and chequing account operated as one account. In this case, if you used funds
from your HELOC, your chequing account showed a negative balance. If you hadn’t used
funds from your HELOC, it showed a positive balance (if you had cash in your account).
Now, HELOCs are listed as a loan and need to be linked to a separate ATB deposit account.
For HELOCs that weren’t linked to an ATB chequing account, we set up a new deposit
account—listed as a HELOC Account. Rest assured, this new account has not resulted in
any new monthly or transactional fees.
Continued
atb.com/upgrade or 1-800-404-4646
Jeffrey
ATB Sunridge
“
Jeffrey’s Tip:
If you see zero dollars in your
chequing or HELOC Account,
check your Home Equity Line of
Credit Revolving Account (listed
under Loan Accounts) to see
how much credit you have used
and to determine the amount of
credit you have available.
“
For others, the HELOC was not set up as linked to an ATB chequing account. In this case,
you checked your balance by looking at your Mortgedge LOC Account (listed as a Deposit
Account). If you used funds from your HELOC, your Mortgedge LOC Account showed a
negative balance. If you had’t used funds from your HELOC, it showed a positive balance.
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So, now you have two accounts to keep an eye on: your chequing account or HELOC Account (listed under Deposit
Accounts) and your Home Equity Line of Credit Revolving Account (listed under Loan Accounts) on your statement, in ATBOnline,
and in telephone banking. When you have used money from your HELOC, your Home Equity Line of Credit Revolving Account will
show the amount of credit you have used and your linked chequing or HELOC Account will show $0. If you have not used money
from your HELOC, your Home Equity Line of Credit Revolving Account will show $0 and your linked chequing or HELOC Account will
show a positive balance—the amount of money you have—or $0 if you do not have any cash in this account.
If you have a balance owing on your Home Equity Line of Credit Revolving Account and you make a deposit into your linked
chequing or HELOC Account, any balance remaining in this account at the end of the day will automatically be transferred to pay
down your Home Equity Line of Credit Revolving Account because that keeps your interest payments down. If the deposit is less
than or equal to the amount owing on your Home Equity Line of Credit Revolving Account, your chequing or HELOC Account will
still have a balance of $0, but your Home Equity Line of Credit Revolving Account balance will have been reduced accordingly.
Example
Here’s what happened before:
• Your chequing account or Mortgedge LOC Account shows a balance of $5,000-. This means that you have used
$5,000 of that HELOC.
• You deposit $2,500.
• Your chequing account or Mortgedge LOC Account shows a balance of $2,500-.
Here’s what will happen now:
• Your chequing or HELOC Account shows a balance of $0. Your Home Equity Line of Credit Revolving Account
shows that you have used $5,000 of that HELOC.
• You deposit $2,500.
• Your chequing or HELOC Account continues to show a balance of $0 but your Home Equity Line of Credit
Revolving Account balance is now $2,500.
Account numbers
Your account number for each Home Equity Line of Credit Revolving Account has been generated. These numbers are available
on your statements, in ATBOnline, and in telephone banking.
Your linked chequing account number has changed too, but it is easy to figure out—simply add two zeros to the front of your old
chequing account number and string your 2-digit sub number onto the end. For new HELOC Accounts, again simply add two zeros
to the front of your old Mortgedge LOC Account number and string your 2-digit sub number onto the end.
For example:
Account #
Sub #
If chequing or Mortgedge LOC Account number was:
1234567
01
Your new chequing or HELOC Account number is:
00123456701
(Now part of main account number)
Don’t worry—you still have the same accounts and any direct deposits and cheques you have on your accounts have not
been affected.
atb.com/upgrade or 1-800-404-4646
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