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[OP]
Sr. Member
Dec 19, 2010
792 posts
246 upvotes
Toronto, Ontario

HELOC question

Situation:
Current mortgage is with MCAP.
I would like to get a HELOC, but not through MCAP but through my normal bank (Scotiabank).

Just wondering if anyone can tell me if Scotiabank or any of the big banks will give a HELOC if your mortgage is not with them?
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Nov 22, 2015
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jamieee wrote: Situation:
Current mortgage is with MCAP.
I would like to get a HELOC, but not through MCAP but through my normal bank (Scotiabank).

Just wondering if anyone can tell me if Scotiabank or any of the big banks will give a HELOC if your mortgage is not with them?
Of course. Any of them will do it.

Keep in mind that if you want a auto-rebalancing HELOC/mortgage combo, then you should wait until maturity and transfer the mortgage to whichever FI you want to go with.
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Jul 6, 2005
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superfresh89 wrote: Of course. Any of them will do it.

Keep in mind that if you want a auto-rebalancing HELOC/mortgage combo, then you should wait until maturity and transfer the mortgage to whichever FI you want to go with.
on a related note....

If you already have an auto-rebalancing HELOC/mortgage combo with a specific bank.... are you able to move that HELOC/mortgage combo to another FI at the end of your term? Or must your HELOC balance be zero (assuming you have a balance), in order to switch to another lender? OR are you pretty much tied to that one bank for the life of the mortgage due to the HELOC/Mortgage combo?
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Feb 2, 2014
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jamieee wrote: Situation:
Current mortgage is with MCAP.
I would like to get a HELOC, but not through MCAP but through my normal bank (Scotiabank).

Just wondering if anyone can tell me if Scotiabank or any of the big banks will give a HELOC if your mortgage is not with them?
You can only do this if you have enough equity in the property. The HELOC alone can only be up to 65% LTV.

So max HELOC amount is:

Property value * .65 - registered mortgage amount

TD will offer a HELOC behing MCAP, but again, you need the equity.
Kevin Somnauth, CFA
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Repooc wrote: on a related note....

If you already have an auto-rebalancing HELOC/mortgage combo with a specific bank.... are you able to move that HELOC/mortgage combo to another FI at the end of your term? Or must your HELOC balance be zero (assuming you have a balance), in order to switch to another lender? OR are you pretty much tied to that one bank for the life of the mortgage due to the HELOC/Mortgage combo?
You have to refinance it. This means you have to pay for legals (about $800) and an appraisal (about $300). It cannot be done as a free transfer.
Kevin Somnauth, CFA
Principal Broker - First Toronto Mortgage - MA (Ontario #13176, BC #X301007)
Real Estate Salesperson - Century 21 Innovative
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Sep 9, 2008
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Mississauga
I tried to get a HELOC with Scotia but they want it to be a collateral charge!
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Szharkov wrote: I tried to get a HELOC with Scotia but they want it to be a collateral charge!
That's only if you get their STEP product (all-in-one product). OP is getting a HELOC separate of the mortgage, so the mortgage remains as a standard charge.
Kevin Somnauth, CFA
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CdnRealEstateGuy wrote: That's only if you get their STEP product (all-in-one product). OP is getting a HELOC separate of the mortgage, so the mortgage remains as a standard charge.
Exactly, I'm telling them I want a straight up HELOC... not STEP. Financial advisor keeps telling me it must be STEP if I want to setup HELOC. Load of bullshit?
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Oct 19, 2005
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What is auto rebalance on HELOC/Mortgage?
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Szharkov wrote: Exactly, I'm telling them I want a straight up HELOC... not STEP. Financial advisor keeps telling me it must be STEP if I want to setup HELOC. Load of bullshit?
Depends on your equity. You may not qualify to do them separately.
Kevin Somnauth, CFA
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avatar12 wrote: What is auto rebalance on HELOC/Mortgage?
When the HELOC availability automatically increases when you make a mortgage payment.
Kevin Somnauth, CFA
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CdnRealEstateGuy wrote: Depends on your equity. You may not qualify to do them separately.
Current mortgage balance is 417k, approx. house value is 580k. LTV is ~ 71.9%, so I should be good to go.
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Sep 4, 2009
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jamieee wrote: Situation:
Current mortgage is with MCAP.
I would like to get a HELOC, but not through MCAP but through my normal bank (Scotiabank).

Just wondering if anyone can tell me if Scotiabank or any of the big banks will give a HELOC if your mortgage is not with them?
I have my 1st mortgage with MCAP. I tried going through another big bank to get a HELOC set up, including Scotia. They will do it, but the rate is high as they are tied in second position. So I was getting quotes ranging from Prime + 1% to 2.5%.

Instead I just went with the MCAP Home Plus plan and that provides the HELOC at Prime + 0.50%. You have to pay legal + appraisal fees to set up it up, but I was reimbursed back for some of the fees as I told them I was using all of it for the long haul.

The downside to this might be renewal time. If I switch my first mortgage, then I can't keep the HELOC with MCAP. The HELOC is only available if my first mortgage also stays with MCAP or is paid off.
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Jun 26, 2007
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I have the auto-rebalance mortgage/HELOC product with MCAP also. Big banks will do HELOC as 2nd position. I used to have TD as 2nd position HELOC before I got the auto-rebalance HELOC. My TD HELOC rate was same as other competitive HELOC rates.

I find HELOC at big banks have advantage if you need to access your money immediately. You can just go to the branch and get a draft/cash. With MCAP HELOC, you need to call in, make a request, and then they deposit the money into your bank account in around 2 business days. Also there's a $1.50 charge. So it depends if immediate access is important to you or if you want an auto-rebalance HELOC.
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Szharkov wrote: Current mortgage balance is 417k, approx. house value is 580k. LTV is ~ 71.9%, so I should be good to go.
No, max LTV for a HELOC is 65%. Your mortgage is already at 71.9% LTV. You have to do an all-in-one product, you can't get a HELOC setup separately.
Kevin Somnauth, CFA
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Chasem wrote: I have my 1st mortgage with MCAP. I tried going through another big bank to get a HELOC set up, including Scotia. They will do it, but the rate is high as they are tied in second position. So I was getting quotes ranging from Prime + 1% to 2.5%.

Instead I just went with the MCAP Home Plus plan and that provides the HELOC at Prime + 0.50%. You have to pay legal + appraisal fees to set up it up, but I was reimbursed back for some of the fees as I told them I was using all of it for the long haul.

The downside to this might be renewal time. If I switch my first mortgage, then I can't keep the HELOC with MCAP. The HELOC is only available if my first mortgage also stays with MCAP or is paid off.
As Fenomenon mentioned, TD is good at offering a HELOC in 2nd position at competitive rates. That's about the only thing they are good for (lol, joking...sort of).
Kevin Somnauth, CFA
Principal Broker - First Toronto Mortgage - MA (Ontario #13176, BC #X301007)
Real Estate Salesperson - Century 21 Innovative
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fenomenon wrote: I have the auto-rebalance mortgage/HELOC product with MCAP also. Big banks will do HELOC as 2nd position. I used to have TD as 2nd position HELOC before I got the auto-rebalance HELOC. My TD HELOC rate was same as other competitive HELOC rates.

I find HELOC at big banks have advantage if you need to access your money immediately. You can just go to the branch and get a draft/cash. With MCAP HELOC, you need to call in, make a request, and then they deposit the money into your bank account in around 2 business days. Also there's a $1.50 charge. So it depends if immediate access is important to you or if you want an auto-rebalance HELOC.
MCAP's Fusion product, Manulife's One product and National Banks AIO product (although they now have extra fees) are the only automatic re-advanceable HELOCs I know.
Kevin Somnauth, CFA
Principal Broker - First Toronto Mortgage - MA (Ontario #13176, BC #X301007)
Real Estate Salesperson - Century 21 Innovative
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Sep 9, 2008
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CdnRealEstateGuy wrote: No, max LTV for a HELOC is 65%. Your mortgage is already at 71.9% LTV. You have to do an all-in-one product, you can't get a HELOC setup separately.
Why can't I get a HELOC for the remaining 8.1% (80-71.9) equity which is roughly 47k?

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