Various options are available on the market that allow you to combine different mortgage products, such as a line of credit and closed mortgages (1 year, 5 years, variable, etc.) These are all guaranteed by a first rank mortgage and can be higher than your property value.
Often, the maximum amount available immediately could be 80% of your property’s actual value. Interest on a line of credit is calculated monthly and only on the specific amount borrowed. It is considered an open mortgage where it is possible to pay only the monthly interest.
There are numerous advantages to having a line of credit. It can be used as needed, for example, to finance renovations or pay off higher interest credit cards. Since there is no penalty or limit for capital reimbursements, this is a good option if you are expecting to be able to make large repayments from funds received.
Feel free to contact us to find out more about different mortgage products, including a line of credit.