When I take a line of credit, do I start making monthly payments, like with a mortgage? Or do I make a lump sum (principal + interest) payment at the end of the term of the line of credit? Or is there no term at all, and I can pay back the principal and interest at a much, much later date?
Thanks for the link to the Financial Consumer Agency of Canada, @ChrisW.Rea. It explained in clear terms that I can withdraw money from and transfer money to the line of credit any time I want. The only monthly payment needed is the minimum payment. And yes, it may have a term after which all remaining principal + interest must be paid back in full.
Similar to a credit card, as you pay off your line of credit, you can draw on it again, up to the limit you are allowed. However, a key difference between a line of credit and a credit card is that with a line of credit there is no interest-free grace period. You will have to pay interest on the amount you borrow from the day you take the money out.
You will receive a monthly statement that shows the amount that you owe on your line of credit. You must make at least a minimum payment on that balance every month.
(n.b. Specific terms and conditions for lines of credit vary from institution to institution.)