Real Estate

Mortgage renewal due now but plan to pay off balance in 2 months - go open mortgage or move balance to heloc?

  • Last Updated:
  • Apr 24th, 2020 3:40 pm
[OP]
Newbie
May 6, 2013
39 posts
10 upvotes
Vancouver

Mortgage renewal due now but plan to pay off balance in 2 months - go open mortgage or move balance to heloc?

So our RBC mortgage is due in early May. By the end of May or shortly thereafter I'll be able to pay it off completely but in the meantime I'll need to either renew another term or switch over the balance to my heloc. The heloc is cheaper rate than an open mortgage but I was wondering if there is any technical details in the fine print if I should choose one over the other. Not very technically inclined with financial terms.
Thx
3 replies
Deal Guru
Dec 11, 2008
10086 posts
1514 upvotes
Hopefully someone will be able to answer this but maybe the question is do you need a HELOC given the potential fees?

How much is the balance that the interest saved covers the fee to set up a HELOC or does it matter?

We did the same, just about to come to renewal and we decided to open a HELOC and transfer the balance to the HELOC and have no mortgage.
[OP]
Newbie
May 6, 2013
39 posts
10 upvotes
Vancouver
Well we have the HELOC set up already so that's no problem as long as I can walk into the bank in say a month and drop off a cheque for 100 grand and clear things up completely without any difficulty/penalty etc.
Deal Addict
Jul 8, 2013
1689 posts
2098 upvotes
Red Deer, AB
Move balance to HELOC. HELOCs are amazing: they are flexible, cheap, and once established they cost nothing to operate (other than interest on the outstanding balance).

Plus, they act as security as well. My old boss had a paid-off home, and someone stole his identity and got a HELOC on his paid-off home. Yes, he got all his money back but man that was some pain he had to go through.
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