Personal Finance

Discharging Mortgage With an Existing HELOC

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  • Apr 12th, 2021 2:05 pm
[OP]
Penalty Box
Dec 26, 2013
520 posts
167 upvotes
Ottawa

Discharging Mortgage With an Existing HELOC

Will be paying off my mortgage next week, I want to keep my HELOC for the low borrowing rate, does this mean I shouldn’t discharge it? Can you discharge your mortgage but keep the HELOC?
4 replies
Deal Addict
User avatar
Dec 24, 2007
1664 posts
2066 upvotes
BC
Yes, they are two separate things. The HELOC is a basically a second mortgage on your house that will become the first mortgage after your mortgage is discharged.

I had a mortgage and a HELOC with ScotiaBank. My HELOC is still active after my mortgage was discharged many years ago.
Deal Addict
May 16, 2017
2218 posts
2892 upvotes
WetCoastGuy wrote: Yes, they are two separate things. The HELOC is a basically a second mortgage on your house that will become the first mortgage after your mortgage is discharged.

I had a mortgage and a HELOC with ScotiaBank. My HELOC is still active after my mortgage was discharged many years ago.
Depends. Some FIs offer (mostly credit unions) multi-purpose mortgages that can have both standard mortgage and HELOC on the same file. So, you can't discharge one without the other in that case.
Member
Jul 22, 2006
235 posts
5 upvotes
Surrey
I have a Homeline mortgage with RBC--one mortgage with a traditional fixed-rate loan portion and a HELOC portion. When I pay off my regular loan portion, that loan will be closed and my HELOC still remains. But the mortgage was never discharged. Say, if I want to sell my house, I have to discharge my mortgage--so no more HELOC.
Member
User avatar
Sep 20, 2015
229 posts
243 upvotes
Ottawa, ON
I was told to keep HELOC active to avoid mortgage fraud on the property in the future. If you need to sell it later then HELOC can be easily discharged when needed.

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