Re-Advanceable Mortgage - Scotia is the Best

I'm surprised why the industry does not explain the re-advanceable mortgage.

If you have 20% equity in your property, you can qualify for a re-advanceable.

What does it do?

1. You can structure it so in any given month you can pay an interest only payment.
2. Any principal you pay down, can be accessed automatically.

For example a $400k mortgage @ 3.19%.

Normal Mortgage - $1,723/month
Interest Only Option - $1,056/month
Cash available after 1 year - $8,100
Cash available after 2 year - $16,500

Imagine loosing your job.

With a normal mortgage, you would have to pay the $1723 regardless.

With a re-advaceable, the minimum payment would be $1056/month. After 1 year you would have access to $8100 dollars. This $8100 dollars would cover your $1056/month for 7 to 8 months.

This creates a 7 to 8 month mortgage defense in the first year.

A great tool to consider. Scotia and others have a re-advanceable mortgage program.

Comments