Using a HELOC to Pay for Your HVAC Upgrade: What to Know

Key Takeaways

• A HELOC can offer lower interest rates and flexible borrowing for HVAC upgrades, but it uses your home as collateral.
• It’s a good option for homeowners with solid equity who want long-term repayment and aren’t in a rush.
• Variable interest rates and a slower approval process are key drawbacks to consider.
• If you need fast, low-risk financing, Mint Home’s partners may be a better fit.
• Mint Home does not offer HELOCs however, if this option sounds right for you, you’ll need to apply through your personal bank or lender

Let’s face it, HVAC systems aren’t cheap. When it’s time for a replacement, figuring out how to pay can feel like its own project.

Some homeowners go with Mint Home’s financing partners. Others want more flexibility and control. If you’ve built equity in your home, a Home Equity Line of Credit (HELOC) might be one option to explore. While Mint Home doesn’t offer HELOCs directly, this guide can help you decide if it’s an option worth pursuing through your bank or credit union.

What Is a HELOC?

A Home Equity Line of Credit (HELOC) is a type of revolving credit that lets you borrow against the equity you’ve built in your home. Think of it like a credit card, but tied to your house.

You’re approved for a maximum limit, but you don’t have to use it all at once. Instead, you can draw funds as needed, often during a 5–10 year “draw period,” and only pay interest on what you borrow. After that, you enter the repayment period, where you pay back the balance over time.

Because it’s secured by your home, a HELOC usually offers lower interest rates than unsecured loans. But it also carries more risk if you’re unable to repay.

If this route sounds right for you, you’ll need to reach out to your bank, credit union or another qualified lender to start the application process.

Potential Benefits of Using a HELOC for HVAC

• Lower interest rates: Because your home backs the loan, you’ll usually get better rates than a personal loan or credit card.
• Borrow only what you need: You don’t have to take out a lump sum. Draw what you need as your project moves forward.
• More time to pay it off: Many HELOCs come with longer repayment terms, which can ease the month-to-month burden.
• Possible tax perks: If the money is used for home improvements, you may be able to deduct the interest (talk to a tax advisor).

Things to Watch Out For

• You’re using your home as collateral: If you can’t make payments, the consequences are serious. This isn’t a no-strings-attached loan.
• Rates may vary: HELOCs often come with variable interest, so your payments could go up over time.
• Extra fees: Some lenders charge closing costs, appraisal fees, or annual account maintenance.
• Slower approval process: Getting a HELOC usually takes longer than the instant financing options offered through Mint Home.

When a HELOC Might Make Sense

• You have enough equity in your home
• You want flexibility and a longer repayment window
• You're not in a rush to install your new system
• You prefer working directly with your own bank or lender

If you need fast approval, want to avoid putting your home at risk, or prefer a fixed monthly plan, using Mint Home’s financing partners might still be the better fit. To learn more about our partners please visit our financing resources page.

Need help deciding?

We get that it’s a big decision. While we don’t offer HELOC’s directly, our team is happy to talk through all your options and help you figure out what makes the most sense for your budget and comfort.

Comparing HELOCs to Other Financing Options

While a HELOC can be a powerful tool, it’s not the only financing path homeowners consider. For example, personal loans provide quicker approval but often come with higher interest rates. Credit cards may offer short-term promotional financing, but they also carry steep long-term costs. Mint Home’s financing partners specialize in HVAC projects specifically, meaning the terms are designed for homeowners who need fast, predictable payment options without the added complexity of collateral. By weighing these choices side by side, you’ll have a clearer picture of which approach aligns with your priorities: speed, flexibility, or minimizing risk. To learn more about our financing partners visit our financing page.

How to Prepare Before Applying for a HELOC

If you think a HELOC is right for you, a little preparation goes a long way. Start by checking your credit score, since lenders will use it to determine your eligibility and interest rate. You’ll also want to confirm how much equity you’ve built in your home, as most banks require at least 15-20% equity before approving a HELOC. Gathering documentation like proof of income, tax returns, and mortgage statements can also help speed up the process once you apply. Finally, be realistic about your budget. Even with lower rates, borrowing against your home is a major decision, so it’s important to have a plan for how you’ll repay over time.

The Bottom Line

For some homeowners, using a HELOC to pay for a new HVAC system makes perfect sense. The ability to borrow at lower rates and pay back on a flexible schedule can provide peace of mind during a big investment. For others, the slower approval process and risks tied to variable rates may outweigh the benefits. Either way, the key is to evaluate your financial situation carefully and compare multiple options before moving forward. Mint Home is here to support you with straightforward guidance and alternative financing options if you decide a HELOC isn’t the right fit.