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Smith Manoeuvre (Maneuver) Mortgages

The Smith Manoeuvre requires use of a readvanceable mortgage. The list below compares several readvanceable mortgages.

Feel free to ask us which best fits your needs. For products available only through the lender we'll refer you to a specialist at that lender who is highly knowledgeable in the Smith Manoeuvre.*

 
Lender Product Name Available Through Maximum Loan-to-Value Minimum Credit Score Maximum Loan Amount Available Mortgage Terms Mortgage Portion Interest Options Auto-Capitalizes
LOC interest?
Appraisal, Re-advance, or other monthly Fees? LOC Interest Compounding Frequency
BMO ReadiLine Lender Only 80% Under 600 possible Unlimited 6 months to 18 years Fixed or variable No Generally none Monthly
Envision Redfrog Line of Credit Lender
Only
70% 600 Depends on borrower 6 months to 10 years Fixed or open variable (closed variables not offered) Yes Appraisal fees Daily
Lender Product Name Available Through Maximum Loan-to-Value Minimum Credit Score Maximum Loan Amount Available Mortgage Terms Mortgage Portion Interest Options Auto-Capitalizes
LOC interest?
Appraisal, Re-advance, or other monthly Fees? LOC Interest Compounding Frequency
FirstLine Matrix Mortgage Mortgage Planner Only 80% 600 $1 million+
(60% maximum LTV for amounts over $700,000)
2 to 10 years Fixed or variable No Appraisal fees waived depending on your mortgage planner Monthly
HSBC Equity Power Mortgage Mortgage Planner or lender 80% 650 Unlimited
(60% maximum LTV for amounts over $1 million)
6 months to 10 years Fixed or variable (or a combination of the two) Yes Appraisal fee, $25 fee per re-advance Monthly
Investors Group All-in-One Lender
Only
80% 620 Unlimited LOC only Variable only on LOC (Fully open) No Generally none Monthly
Manulife Manulife One Mortgage Lender Only 80%   Generally 650 Unlimited 6 months to 10 years Fixed or variable No $14 monthly fee Monthly
Lender Product Name Available Through Maximum Loan-to-Value Minimum Credit Score Maximum Loan Amount Available Mortgage Terms Mortgage Portion Interest Options Auto-Capitalizes
LOC interest?
Appraisal, Re-advance, or other monthly Fees? LOC Interest Compounding Frequency
Merix HELOC Mortgage Planner Only 80% 680 (650 for co-applicant) $1 million (or more if client pays insurance) 5 years Fixed or variable (or a combination of the two). No None Monthly
National Bank All in One Mortgage Planner or lender 80% 670 $500,000 if stated income. Unlimited otherwise. 1 to 10 years Fixed or variable (or a combination of the two). No Appraisal fee plus $2.50 monthly for each sub account after the first one Monthly
RBC Homeline Lender Only 80% Under 600 possible Unlimited 6 months to 10 years Fixed or variable (or a combination of the two) No None Monthly
Scotiabank Scotia Total
Equity Plan (STEP)
Mortgage Planner or lender 80% Low 600s Unlimited.
(65% maximum LTV for amounts over $500,000)
6 months to 10 years Variable or fixed (or a combination of the two) No Appraisal fees only (may be waived in some cases) Monthly
Lender Product Name Available Through Maximum Loan-to-Value Minimum Credit Score Maximum Loan Amount Available Mortgage Terms Mortgage Portion Interest Options Auto-Capitalizes
LOC interest?
Appraisal, Re-advance, or other monthly Fees? LOC Interest Compounding Frequency
TD HELOC Lender only 80%
Under 600 possible Unlimited 6 months to 10 years Fixed No $230 appraisal fee if over $500,000 Monthly
Vancity Readvanceable Mortgage Mortgage Planner or lender 80% Under 600 possible $1.5 million 6 months to 5 years Fixed or variable No Appraisal fees.  $185 fee for every LOC increase. Monthly

    Continued...

Lender Product Name Pre-payment Privileges Max.
Amort-
ization
on
fixed (years)
LOC is Callable Any time? Automatic LOC Increase After
Principal
Payments?
Must re-apply to increase LOC after Principal payments? LOC can be increased if home value rises--without legal fees? Max.
Credit
Lines
Automatic Investing from LOC? Portable
to
another house?
Miscellaneous
BMO ReadiLine 20% of principal can be repaid before each anniversary PLUS monthly payments can be increased 20% 35 Only upon default Yes No No 4 No Yes MasterCard provided.
Envision Redfrog Line of Credit 100% anytime 25 Yes Yes No Yes
1
(But multiple "blocks" [sub-accounts] are available)
No No

Fully variable

There is no need to port this product because there is no locked-in rate or penalty.

Linked MasterCard available.

No prepayment penalties. May be repaid any time. As long as account is below the maximum allowable LTV only interest-only payments are required.

$150 fee for LOC increases above the originally set limit.

BC only.

Lender Product Name Pre-payment Privileges Max.
Amort-
ization
on
fixed (years)
LOC is Callable Any time? Automatic LOC Increase After
Principal
Payments?
Must re-apply to increase LOC after Principal payments? LOC can be increased if home value rises--without legal fees? Max.
Credit
Lines
Automatic Investing from LOC? Portable
to
another house?
Miscellaneous
FirstLine Matrix Mortgage

Fixed: 20% of principal can be repaid any time before each anniversary PLUS monthly payments can be increased 25%.

Variable: 20% of principal can be repaid once per year PLUS payments can be increased an unlimited amount subject to a 5-year minimum amortization.

35 Only in default
(LOC reviewed every 5 years)
Yes No No 1 Yes
(via Mlink--a $39.95 monthly charge.)
Yes

One of the only discounted lines of credit. (On fixed rate Matrix only. Ask for details)

LOC doesn't appear on credit bureau. (Important for preserving one's credit score.)

Excellent conversion rates when converting from a variable to a fixed rate after closing.

Can also be used with rental properties.

Funds can be moved electronically 48 hours after they are transferred into the LOC.

Excellent online portal. Mortgage and LOC payments are automatically deducted from bank account. Can transfer funds online to bank account from LOC.

HSBC Equity Power Mortgage 20% of principal can be repaid in one lump sum per year. Monthly payments can be doubled-up every few months, and increased annually up to 20%. In any case, the total 20% prepayment limit cannot be exceeded. 35 Only upon default No
(Must phone in or go to branch)
Yes Yes 5+ No Yes

Re-application may, or may not, be necessary when increasing LOC.  Speak to a mortgage planner or the branch.

Re-advances may be done quarterly (in some cases monthly).

Can register 100% of the property value (to avoid legal fees when increasing the LOC), but the loan amount cannot exceed 80% LTV

Portions at discounted variable rates are fully open after three years.

Offers a fixed payment option on variable portions.

Has a match-a-payment/skip-a-payment feature

Lender Product Name Pre-payment Privileges Max.
Amort-
ization
on
fixed (years)
LOC is Callable Any time? Automatic LOC Increase After
Principal
Payments?
Must re-apply to increase LOC after Principal payments? LOC can be increased if home value rises--without legal fees? Max.
Credit
Lines
Automatic Investing from LOC? Portable
to
another house?
Miscellaneous
Investors Group All-in-One

100% anytime

N/A Only upon default Yes No No 3 Yes No

Offered only through IG financial consultants.

Based on National Bank's All-in-One.

Includes full tax and wealth management planning.

May be exceptions to Beacon requirement on case-by-case basis

Manulife Manulife One Mortgage

10% of principal can be repaid before each anniversary PLUS monthly payments can be increased 25%

Fully open if no fixed-rate sub account is established.

25 Only upon default Yes No (must move money manually via internet or phone) Yes
(In $25000 increments. Income re-verification required.)
5 No

Not with fixed rate sub account but yes if you only have a variable

Savings and debt are merged in one account. Interest is then calculated daily and is offset by any positive balances, thus saving borrowers interest over time.

25% of the borrower's mortgage must be in the line of credit portion at all times.

Access card provided for purchases or withdraws via ATM

Deposits may be made at any RBC branch or partner ATM

If you don't get a fixed portion you can pay it off at any time with a $170 de-registration fee. There are no interest penalties for pre-paying the LOC but there are if there is a fixed portion.

You can lock in up to 75% of total outstanding balance at any time, at a lower rate and for fixed period.

Ability to skip mortgage payments--up to your allowed credit limit (if your mortgage sits in the line of credit portion).

Legal fees covered.

Lender Product Name Pre-payment Privileges Max.
Amort-
ization
on
fixed (years)
LOC is Callable Any time? Automatic LOC Increase After
Principal
Payments?
Must re-apply to increase LOC after Principal payments? LOC can be increased if home value rises--without legal fees? Max.
Credit
Lines
Automatic Investing from LOC? Portable
to
another house?
Miscellaneous
Merix HELOC 20% of principal can be repaid before each anniversary PLUS monthly payments can be increased 20% 25 Only upon default Yes No No 1 No Yes

LOC not reported to credit bureaus.

Excellent conversion rates when converting from a variable to a fixed rate after closing.

Debt ratios up to 44% TDS allowed.

LOC is not open. It has a 5-year term and penalties for early termination.

National Bank All in One

100% can be repaid at any time without penalty if mortgage held in LOC. Otherwise, 10% can be pre-paid annually plus payments can be doubled up monthly.

35 Only upon default Yes No Yes 99 Yes Yes

Savings and debt are merged in one account. Interest is then calculated daily and is offset by any positive balances, thus saving borrowers interest over time.

$25,000 of the borrower's mortgage must be in the line of credit portion at all times.

Free unlimited electronic banking included with each sub-account.

Outside accounts (like a brokerage account) can automatically debit from a specific AIO account each month.

Customers can use bill-pay with any AIO account.

Customers can automatically transfer funds directly from an AIO sub-account to any outside institution (like a brokerage account) each month. Very useful for automated investing.

Make minimum interest-only payments if desired on the LOC portion.

Each sub-account is a seperate checking account. (Useful for cash flow damming)

Debit card included.

Lender Product Name Pre-payment Privileges Max.
Amort-
ization
on
fixed (years)
LOC is Callable Any time? Automatic LOC Increase After
Principal
Payments?
Must re-apply to increase LOC after Principal payments? LOC can be increased if home value rises--without legal fees? Max.
Credit
Lines
Automatic Investing from LOC? Portable
to
another house?
Miscellaneous
RBC Homeline 10% of principal can be repaid in one lump sum per year, PLUS payments may be doubled up, PLUS monthly payments may be increased up to 10% once per year. 35 Yes Yes No Yes 5 No No The "mortgage" portion can be a mix of different terms, and can be a mix of fixed or variable rates.

No credit card provided.
Scotiabank Scotia Total Equity Plan (STEP)

15% of principal can be repaid before each anniversary PLUS monthly payments can be increased 15% PLUS each payment can be doubled-up ("Match-a-payment"). 

Additional pre-payment options may be provided on an exception basis.

35 Only upon default Yes No No 3 Inquire No

Can have 3 fixed or variable components PLUS up to 3 LOC sub-accounts.

Includes Skip-a-payment feature.

$100 minimum LOC re-advance.

Can include a VISA card linked to the mortgage.

Lender Product Name Pre-payment Privileges Max.
Amort-
ization
on
fixed (years)
LOC is Callable Any time? Automatic LOC Increase After
Principal
Payments?
Must re-apply to increase LOC after Principal payments? LOC can be increased if home value rises--without legal fees? Max.
Credit
Lines
Automatic Investing from LOC? Portable
to
another house?
Miscellaneous
TD HELOC 15% of principal can be repaid any time before each aniversary PLUS monthly payments can be doubled-up at any time. 35 Only upon default Yes No Yes 3 No No

Debit card included.

Can choose to lock in different portions at different fixed rates and terms after closing.

Must use TD's lawyers. Appraisal plus legal fees are roughly $500 and up depending on the province.

Vancity Readvanceable Mortgage 10% of principal can be repaid in one lump sum per year OR you may double up payments. 35 Only upon default No (must request readvance in branch or by phone) Yes Yes 5+ No Yes Only available in BC.

Readvances must be made in increments of $25,000 or more.

* Please note: This content is for general informational purposes only and is subject to change without notice. This information is not advice of any kind, is not guaranteed for completeness or accuracy, and is not endorsed by the above lenders. Other fees (like legals fees, etc.) may apply. Consult a qualified mortgage planner and financial advisor before acting on this information.

 

 

 
   
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