Readvanceable Mortgage

A readvanceable mortgage has two segments:

  1. A regular mortgage
  2. A line of credit

As you pay down the mortgage portion, the lender increases the available credit in your line of credit by the same amount. That lets you “readvance” (re-borrow) the funds later, if needed.

Suppose, for example, that you paid off $1,000 of principal on your mortgage. With a readvanceable mortgage, the lender would let you borrow that $1,000 from your attached line of credit.

Examples of readvanceable mortgages include:

  • National Bank’s All-in-One
  • Manulife’s One
  • Scotiabank’s STEP
  • RBC’s Homeline
  • BMO’s ReadiLine
  • TD’s HELOC
  • CIBC’s Home Power Plan
  • And various credit union products

The most convenient readvanceable mortgages are those that automatically readvance credit, as opposed to some which make you re-apply each time you want an advance.