Real Estate

*Advise Needed*: Conventional Mortgage vs HomeLine Credit

  • Last Updated:
  • Aug 18th, 2021 11:12 pm
[OP]
Newbie
May 27, 2021
45 posts
17 upvotes

*Advise Needed*: Conventional Mortgage vs HomeLine Credit

Hello,
My mortgage brokers (more than one) have extended me Homeline credit mortgage rather than conventional mortgage. I assume brokers make more money selling such option.

I wonder for me are there any disadvantages of going with mortgage with homeline credit? I do not plan to use line of credit in next 5 years which is maturity period of the mortgage.

Thanks in advance for your all the advise.
3 replies
Sr. Member
Mar 14, 2018
945 posts
902 upvotes
GTA
It will be collateral mortgage so look up its cons. To me it was worth taking it
Member
User avatar
Jan 7, 2019
368 posts
373 upvotes
Conventional mortgage = You have $xxx,xxx, you pay down $xxx,xxx. Done

Homeline (Or HELOC) = You get $xxx,xxx in mortgage + $yyy,yyy in secured line of credit. As you pay down your mortgage $xxx,xxx, your line of credit increases giving you the opportunity to re-access your equity in your home for future investments.

Your maturity period doesn't matter as much. Only if you know you will be moving your mortgage to another FI in the future where you will need to re-qualify.
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