Real Estate

Those of you who are Smith Maneuvering, which lender is your re-advanceable mortgage with and why?

  • Last Updated:
  • May 29th, 2021 9:42 pm
[OP]
Jr. Member
Jun 3, 2017
182 posts
142 upvotes

Those of you who are Smith Maneuvering, which lender is your re-advanceable mortgage with and why?

Scotia's STEP, RBC's Homeline. TD's Flexline... etc. Who did you end up with and why? What did you discover are the pros/cons of the specific lender that you picked?

If you've gone from one to another and have a baseline to compare, is there that big of a difference between them?
23 replies
Sr. Member
Dec 23, 2012
504 posts
499 upvotes
RICHMOND HILL
I have a TD flexline and a STEP plan with scotia, I like flexline much more because with STEP I have to ring them up to get it increased.
Banned
Jan 3, 2021
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Mosho1 wrote: I have a TD flexline and a STEP plan with scotia, I like flexline much more because with STEP I have to ring them up to get it increased.
STEP has auto limit increase for line of credit component.
Just need to ask for it to be activated.


Step is the superior product in terms of flexibility.
3 mortgages
2 locs
2 cc
etc,
And you can move to mortgage from LOC at any time.
Sr. Member
Dec 23, 2012
504 posts
499 upvotes
RICHMOND HILL
pfcresu wrote: STEP has auto limit increase for line of credit component.
Just need to ask for it to be activated.


Step is the superior product in terms of flexibility.
3 mortgages
2 locs
2 cc
etc,
And you can move to mortgage from LOC at any time.
hmm when I asked for something like this it wasn't offered, but I'll check again
[OP]
Jr. Member
Jun 3, 2017
182 posts
142 upvotes
Mosho1 wrote: hmm when I asked for something like this it wasn't offered, but I'll check again
This is interesting. The whole point of a re-advanceable mortage is that the HELOC room gets increased automatically. Are you sure you're on their Flexline product and not their standard mortgage?
[OP]
Jr. Member
Jun 3, 2017
182 posts
142 upvotes
pfcresu wrote: STEP has auto limit increase for line of credit component.
Just need to ask for it to be activated.


Step is the superior product in terms of flexibility.
3 mortgages
2 locs
2 cc
etc,
And you can move to mortgage from LOC at any time.
Out of curiosity, how does this flexibility help with the Smith Maneuver? Or are you just saying that you like the overall flexibility in addition to what you get out of SM?
Sr. Member
Dec 23, 2012
504 posts
499 upvotes
RICHMOND HILL
AnotherDesiredUsername wrote: This is interesting. The whole point of a re-advanceable mortage is that the HELOC room gets increased automatically. Are you sure you're on their Flexline product and not their standard mortgage?
flexline is TD, this one is scotia's STEP.
[OP]
Jr. Member
Jun 3, 2017
182 posts
142 upvotes
Mosho1 wrote: flexline is TD, this one is scotia's STEP.
My bad, got the order wrong. Just wanted to point out that it's a bit odd that a re-advanceable mortgage doesn't do what it's expected to.
Banned
Jan 3, 2021
151 posts
151 upvotes
AnotherDesiredUsername wrote: Out of curiosity, how does this flexibility help with the Smith Maneuver? Or are you just saying that you like the overall flexibility in addition to what you get out of SM?
you can flip from a LOC to a mortgage, which is a lower interest rate, and vice versa when your mortgage term is up. You know, you can use a mortgage the same way you can a LOC to accomplish the same thing...
Sr. Member
Dec 13, 2010
904 posts
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Vancouver
AnotherDesiredUsername wrote: Out of curiosity, how does this flexibility help with the Smith Maneuver? Or are you just saying that you like the overall flexibility in addition to what you get out of SM?
Helps for bookeeping. You can have separate mortgage components or LOC components dedicated to investing vs personal use. It's easier to track how much borrowing interest is deductible.
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Jul 4, 2005
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I researched this a lot earlier this year when I started SM. This info is so hard to find! I wanted one that doesn’t charge you a monthly fee so NBC was out. Then I looked at best rates. I also wanted the flexibility of having multiple LOCs to separate personal spending vs investments. This is where things get tricky. It’s so hard to know who supports this. STEP for sure but beyond that I don’t know. Maybe manulife but they also have a monthly fee I believe. In the end I went with cibc(they don’t allow multiple loc) because they had a promo for the mortgage rates. If they didn’t have the promo I may have been still digging around trying to find the right bank haha. I figured I’ll start something now and then learn by renewal time to see if switching somewhere else makes sense. Good luck!
[OP]
Jr. Member
Jun 3, 2017
182 posts
142 upvotes
jeeva86 wrote: I researched this a lot earlier this year when I started SM. This info is so hard to find! I wanted one that doesn’t charge you a monthly fee so NBC was out. Then I looked at best rates. I also wanted the flexibility of having multiple LOCs to separate personal spending vs investments. This is where things get tricky. It’s so hard to know who supports this. STEP for sure but beyond that I don’t know. Maybe manulife but they also have a monthly fee I believe. In the end I went with cibc(they don’t allow multiple loc) because they had a promo for the mortgage rates. If they didn’t have the promo I may have been still digging around trying to find the right bank haha. I figured I’ll start something now and then learn by renewal time to see if switching somewhere else makes sense. Good luck!
Do you bank with CIBC? That is, how does CIBC treat their HELOC? Just like any other account where you can link it externally and just do an EFT? Or do you have to first create a savings account and transfer the funds to that account in order to withdraw the funs externally?
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Dec 13, 2010
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Vancouver
AnotherDesiredUsername wrote: Do you bank with CIBC? That is, how does CIBC treat their HELOC? Just like any other account where you can link it externally and just do an EFT? Or do you have to first create a savings account and transfer the funds to that account in order to withdraw the funs externally?
I'm not with CIBC, but I think it functions as a chequing account. There is a thread on this here:

does-cibc-ploc-function-100-free-chequi ... #p34486840
Deal Addict
Mar 14, 2018
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I'd go with the bank that offers the lowest combination of mortgage and HELOC rates. I don't any of the convenience or additional features trump the money spent on higher interests.
Newbie
Mar 29, 2020
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Not sure why there needs to be a separate thread on this.

For context, I use RBC Homeline and pay zero fees. Also have the ability to split off the HELOC into multiple lines (S.M, Personal use, cash damming...etc)
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AnotherDesiredUsername wrote: Do you bank with CIBC? That is, how does CIBC treat their HELOC? Just like any other account where you can link it externally and just do an EFT? Or do you have to first create a savings account and transfer the funds to that account in order to withdraw the funs externally?
Correct, it’s just like TD’s, functions as a chequing account to the external world. I have it linked from tangerine to pull money from the heloc, which then get sent over to ws. I can’t link ws to the heloc because I have to login to cibc to do the linking and it will only list chequing accounts.

I have no other products with cibc, except for the chequing account that I needed to open the mortgage. I needed that to get the cashback bonus. Also I need a cibc account to do prepayment lump sum payments. I think If you call in, it can be done via the external account.
[OP]
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Jun 3, 2017
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Hey thanks so much. This is super helpful. But with regard to this...
jeeva86 wrote: I have it linked from tangerine to pull money from the heloc, which then get sent over to ws. I can’t link ws to the heloc because I have to login to cibc to do the linking and it will only list chequing accounts.
I don't actually understand the crux of the problem here. Are you saying that WS doesn't list the HELOC when you login with your CIBC credentials via the Add Funds option? There's an option to add with transit/account number if the account is not listed, does that not work either?

Also, how exactly did you add it to Tangerine? Does Tangerine's external accounts option let you add it to transfer via chequing/savings account?
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AnotherDesiredUsername wrote: Hey thanks so much. This is super helpful. But with regard to this...



I don't actually understand the crux of the problem here. Are you saying that WS doesn't list the HELOC when you login with your CIBC credentials? There's an option to add with transit/account number if the account is not listed, does that not work either?

Also, how exactly did you add it to Tangerine? Does Tangerine's external accounts option let you add it to transfer via chequing/savings account?
Oh didn’t know abt the manual linking option at ws. That should work! I’ll have to revisit that to reduce the delays.

For tangerine, yes I linked it just like any chequing account. I assume ws’ manual linking would be identical.
[OP]
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Jun 3, 2017
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jeeva86 wrote: Oh didn’t know abt the manual linking option at ws. That should work! I’ll have to revisit that to reduce the delays.

For tangerine, yes I linked it just like any chequing account. I assume ws’ manual linking would be identical.
If you're going to try to add it, it would be awesome to see an update! I'm actually really curious.
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AnotherDesiredUsername wrote: If you're going to try to add it, it would be awesome to see an update! I'm actually really curious.
Yep I set it up just now. Will need to wait a few days to get it confirmed.

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