HELOC Relaunch by JPMorgan Chase marks the bank’s calculated return to the home equity lending market, after a five-year suspension prompted by the uncertainty of the pandemic era. With U.S. homeowners now sitting on unprecedented levels of equity, Chase is positioning itself to meet surging demand for flexible credit options that do not require refinancing.
Market Timing and Strategic Considerations
Chase initially withdrew its HELOC offering in April 2020, in line with moves by peers such as Wells Fargo and Bank of America, as COVID-19 destabilised economic outlooks. While Bank of America maintained its HELOC business under tighter credit criteria, Wells Fargo has yet to re-enter the segment.
Now, the context has shifted dramatically. According to Erik Schmitt, Chase’s Digital Channel Executive, homeowners are actively seeking ways to monetise the increased value of their properties—without compromising historically low mortgage rates. “We’re proud to offer customers the ability to secure a HELOC through Chase,” he stated.
Robust Homeowner Equity Levels Bolster Demand
Recent data underscores the rationale behind Chase’s reentry. According to an Intercontinental Exchange Mortgage report, total homeowner equity reached $17.8 trillion in Q2 2025. Of this, $11.6 trillion is considered tappable—accessible without breaching a 20% equity threshold. Roughly 48 million mortgage holders currently possess an average of $213,000 in usable equity.
Moreover, real estate data from ATTOM reveals that nearly half of mortgaged residential properties are now “equity rich,” meaning the outstanding loan is less than 50% of the property’s value.
Product Features and Mechanics
- Loan-to-Value Access: Borrowers can access up to 80% of their home’s value without altering their existing mortgage rate.
- Lump Sum Requirement: At least 85% of the approved credit line must be drawn at closing as a lump sum. The remaining credit remains available for three years.
- Repayment Structure: The HELOC follows a 30-year term—10 years of interest-only payments, followed by 20 years of principal and interest amortisation.
- Loan Range: Available credit lines span from $25,000 to $400,000, subject to a maximum combined loan-to-value ratio of 80%.
- Origination Fees: A one-time fee of up to 4.99% of the credit limit applies and is financed into the loan amount.
- Availability: The product is offered nationwide, excluding Texas, due to state-specific regulations.
- Digital Tools: Chase’s platform includes a HELOC calculator, allowing customers to model rates, fees, and potential repayment schedules in real time.
Gradual Roll-Out Now Reaches Nationwide Scale
Initially reintroduced in physical branches during spring 2025, Chase’s HELOC product is now available nationwide—excluding Texas, where specific regulatory limitations apply. In parallel, the bank’s digital platform offers an interactive HELOC simulator, enabling prospective borrowers to estimate borrowing capacity, related fees, and repayment terms with precision.