Smith Manoeuvre Mortgages & Readvanceable Mortgages

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	Rate Options on Mortgage Portion	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 AND/OR open variable	Yes	Appraisal fees	Monthly
Lender	Product Name	Available Through	Maximum Loan-to-Value	Minimum Credit Score	Maximum Loan Amount	Available Mortgage Terms	Rate Options on Mortgage Portion	Auto-Capitalizes LOC interest?	Appraisal, Re-advance, or other monthly Fees?	LOC Interest Compounding Frequency
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 AND/OR variable	Yes	Appraisal fee, $25 fee per re-advance	Monthly
Investors Group	All-in-One	Lender Only	80%	620	Unlimited	LOC only	Fixed only	No	Generally none	Monthly
Manulife	Manulife One Mortgage	Lender Only	80%	Generally 650	Unlimited	6 months to 10 years	Fixed only	No	$14 monthly fee	Monthly
Lender	Product Name	Available Through	Maximum Loan-to-Value	Minimum Credit Score	Maximum Loan Amount	Available Mortgage Terms	Rate Options on Mortgage Portion	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 AND/OR variable	No	Appraisal fee sometimes applies	Monthly
National Bank	All in One	Mortgage Planner or lender	80%	670	$500,000 if stated income. Unlimited otherwise.	1 to 10 years	Fixed AND/OR variable	Yes	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 AND/OR variable	No	Appraisal fee sometimes applies	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	Fixed AND/OR variable	No	Appraisal fee sometimes applies	Monthly
Lender	Product Name	Available Through	Maximum Loan-to-Value	Minimum Credit Score	Maximum Loan Amount	Available Mortgage Terms	Rate Options on Mortgage Portion	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 only	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 on Mortgage Portion	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%	30	Only upon default	Yes	No	No	4	No	No	MasterCard provided.
Envision	Redfrog Line of Credit	15% of principal can be repaid per year PLUS monthly payments can be increased 100% each year	25	Yes	Yes	No	Yes	1 (But multiple "blocks" [sub-accounts] are available)	No	No	Only available in BC. 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.
Lender	Product Name	Pre-payment Privileges on Mortgage Portion	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
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.	30	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 on Mortgage Portion	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	10% of principal can be repaid each year PLUS ongoing monthly payments can be increased 100% PLUS individual monthly payments may be topped up by 1-100%	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	30	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. 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). Bill-pay directly from LOC Legal fees covered.
Lender	Product Name	Pre-payment Privileges on Mortgage Portion	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	NO LONGER AVAILABLE (As of April 18, 2011) 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 fully open like most LOCs. It has a 5-year term and penalties for early termination.
National Bank	All in One	10% of principal can be repaid each year PLUS ongoing monthly payments can be increased 100% PLUS individual monthly payments may be topped up by 1-100%	30	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. $10,000 of the borrower's approved mortgage limit must be in the line of credit portion. 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 on Mortgage Portion	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.	30	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. Unlike most lenders, lump-sum mortgage pre-payments may only be made once a year
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.	30	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 on Mortgage Portion	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.	30	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. TD provides their own lawyers. Appraisal plus legal fees are roughly $500 and up depending on the province. $10,000 is the minimum size of a LOC sub-account.
Vancity	Readvanceable Mortgage	20% of principal can be repaid in one lump sum per year PLUS monthly payments may be increased 20% once per year.	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.