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7 replies
Moderator
May 28, 2012
12484 posts
5278 upvotes
Saskatoon
We did this with RBC...they waived the fees in the process, but we'll have to pay to discharge the mortgage when we sell. It's always a good idea to arrange for a line of credit before you actually need it.
Deal Fanatic
User avatar
Dec 8, 2007
5550 posts
2220 upvotes
If there is a secured facility against the house, with a preferred rate (usually at prime) then keeping it has a benefit ....

If you are getting rid of the secured credit line, I would discharge the lien.
Hydropwnics wrote:"TodayHello is a certified hustler and original gangster."
Deal Addict
Jul 19, 2004
1791 posts
1181 upvotes
Vancouver
I would keep it, there's no fee to keep the limit anyways. You can have a STEP limit but with no products in it and setup a line of credit/mortgage if you need the money later on. Also saves you from paying the discharge fee now vs when you sell it later.

If I remember correctly you get 50% off the annual fee on their Visas if you put it under the STEP too.
Deal Addict
Sep 5, 2009
3301 posts
1486 upvotes
I've heard, but never confirmed, that houses without mortgages cost less to insure. If that is true would a heloc eliminate the discount?
Deal Expert
Aug 2, 2001
18944 posts
10526 upvotes
dgnr8 wrote: I've heard, but never confirmed, that houses without mortgages cost less to insure. If that is true would a heloc eliminate the discount?
You are correct - some insurance companies offer a discount when there is no mortgage:
http://blog.ellenroseman.com/?p=1004

You would have to talk to the insurance company as to whether a HELOC would count the same as a mortgage. Personally, I assume it would but that's an assumption on my part. Wouldn't hurt to ask your insurer about it (if you are mortgage free).
Moderator
May 28, 2012
12484 posts
5278 upvotes
Saskatoon
We get a discount on our home insurance for being mortgage-free, even though we have a HELOC...they never asked for proof, perhaps because we have been dealing with the same broker for many years?

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