VERSATILE LINE OF CREDIT

My house is financing my projects!

Has your home grown older, but also gained value over the years? Are you planning a reno, major purchase (car, pool, etc.) or big trip, or need to make a large contribution to your RRSP? The Versatile Line of Credit is the perfect solution.

The Versatile Line of Credit is a mortgage-secured line of credit that lets you leverage up to 80% of the value of your home to finance all your immediate and future projects. Up to 65% of the property value may be taken out as a line of credit and the remaining financing as a loan tied to the Versatile Line of Credit.

How does it work?

  • Once the amount of the line of credit is established, you can use your funds when you need them, without having to reapply for authorization. Take control of your finances;
  • You can draw on your line of credit anytime to cover major expenses (renos, tuition, car, RRSP contribution or loan consolidation at a better rate);
  • Cash advances from this line of credit can be turned into separate term or mortgage loans ($15,000 or more) linked to the Versatile Line of Credit, anytime;
  • You can save money by combining your car, personal or mortgage loans;
  • Huge repayment flexibility;
  • Money available anytime;
  • You can split up your financing sources by diversifying your mortgage loan.

Diversifying your mortgage loan

  • A mortgage loan is often the biggest investment you will ever make and sometimes even greater than your retirement savings. Just like with savings, you should diversify the risk based on your needs, your tolerance for rate fluctuations and your financial means. If you like, the Versatile Line of Credit lets you choose how to diversify your mortgage loan into two or three tranches by varying the interest rate, terms, maturities or amortizations.

Interest rate

  • Variable and lower than the interest rate for a personal line of credit;
  • Fluctuates with the prime rate;
  • Interest is calculated based on the daily balance, so you only pay interest on the amount you use.

For the current rate, contact an advisor.

Amount approved

  • Minimum of $25,000;
  • Up to 80% of the value of your property. Up to 65% of the property value may be taken out as a line of credit and the remaining financing as a loan tied to the Versatile Line of Credit.

Repayment

  • Possible frequencies: daily, weekly or monthly;
  • You choose how you repay:
    • a percentage of the monthly balance
    • a fixed or variable amount
    • monthly interest only
  • Option to repay the line of credit in full or in part before maturity, anytime and without penalty.

Access to cash

  • At an ATM, online with AccèsD Internet, by cheque or through a teller.

Contact your advisor to see if the Versatile Line of Credit is the best solution for you.