[...] Residence Mortgage (readvanceable): $23,700.00 [...]

[...] Residence Mortgage (readvanceable): $23,700.00 [...]

[...] Residence Mortgage (readvanceable): $25,200.00 [...]

[...] Residence Mortgage (readvanceable): $26,800.00 [...]

[...] Residence Mortgage (readvanceable): $29,200.00 [...]

[...] Residence Mortgage (readvanceable): $30,700.00 [...]

[...] What’s the right way to do it?  Here’s my opinion -  If you plan from the beginning that the house is going to be a rental when you move in future, then I would personally pay as little as possible on the mortgage throughout the years of living there, and save the difference as cash.  The accumulated cash will serve as a down payment on the future new residence, leaving the rental mortgage untouched and converted to a tax deductible mortgage. [...]

[...] in leveraging their home to invest to hand off the whole setup.  That is, TDMP will arrange the readvanceable mortgage, investment account/investments along with arranging payments, and mortgage pay down.  [...]

[...] instead of a non-registered portfolio (like the Smith Manoeuvre).  Here is the question: I have a readvanceable mortgage – Take your equity out as you pay your mortgage (max payment you can afford like in SM), and invest [...]

[...] With current market conditions, it’s a gut check to see who can really take the leveraged investing heat.  With the possibility of HELOC (home equity line of credit) rates, which are traditionally at prime, to increase above prime, it will make this strategy even more expensive.  However, with a slow economy, the prime lending rates will most likely decrease even further, which will hopefully even out any increases.  With that said, The Smith Manoeuvre strategy is still a valid option, just with one less readvanceable mortgage available along with the potential with higher HELOC rates.  For those of you looking for alternative readvanceable mortgages, here are some of my other favorites. [...]

[...] Investment Loan – For example, with the Smith Manoeuvre, the HELOC interest on a readvanceable mortgage is 100% tax deductible providing that the HELOC is invested in income producing [...]

If you don’t have the 20% down, you will probably have to pay a large CMHC fee to get the mortgage. If you can avoid that, you should borrow the $10K elsewhere and then you may as well also get the Readiline.

Ed

That’s my opinion anyways.

FT

I would not have entered into the Homeline if there were any penalties or other costs that would not have been charged at renewal. Since I would have had to register the Homeline in any case, it was not an additional cost (though I would have liked the bank to absorb it!)

DAvid

If I was a bank and you had a 5 year closed mortgage at an interest rate that was pretty close to prime, it looked like prime was close to its trough and about to resume an upward movement again, I would have no problem (i.e. no penalty) with moving you to another CLOSED variable rate mortgage of at least the length of time left in your current mortgage.

Is that what happened in your scenario?

I actually wrote a post on new features offered on HELOC earlier today:
http://www.thefinancialblogger.com/special-features-on-home-equity-line-of-credit-heloc/

One of the feature is to allow the client having more than 1 product included within his HELOC. Therefore, you are now able to have a fixed, a variable rate and a line of credit attached to your house.

Interesting; RBC allowed me to move my closed mortgage to their Homeline product without penalty.

Of further interest is Moshe Milevsky, the York University professor who earlier published the document praising variable rates over fixed rates. He now promotes a very different strategy: “Mortal minds cannot predict the credit markets. We don’t know what the yield curve will do next month. The sensible approach is therefore to have some fixed-rate debt, some variable-rate debt, some long-term and some-short term. Assets are commonly diversified, so why not debt?”

How many mortgages allow product diversification where you can have a number of mortgages & terms & rates in the one account?

DAvid

Perhaps you should look at CTFS. In person, there are only a few cities in Canada apparently that they are offering mortgages but online they seem to be able to offer them to anyone. The last time I checked they were at P – 0.9 although the balance is compounded monthly. You could also go for a fixed at 4.99% for a 5 year term which seems that it could work out better than a 3 year variable at P – 0.5.

Tyler