HELOC at renewal with depreciated home value?
I’m not very knowledgeable in terms of mortgages so bear with me please.
I have a 3 year fixed mortgage with Scotiabank and my first renewal is in April 2027 but I can renew 6 months early in October. I bought the home for 700k and now it’s worth 600k.
I wasn’t offered a HELOC at the time or even knew about it (…I know) to ask for one.
With the value of the home depreciating to 600k, my remaining balance goes above 80 percent of the value of the house. Since pretty much the whole 3 years I was paying interest, the remaining balance didn’t go down that much.
My question is, When it comes time to renew, will I be offered a HELOC? Can I ask for one?
Edit: my real question I suppose would be, would the bank check the current value of the home or go with the original price if I asked for a HELOC?