Homeowner's Kit
Is your home completely or partially paid for? You are sitting on money! Your home can be used as leverage to:
- make your wildest dreams come true;
- improve your quality of life;
- increase your financial worth; or
- group different types of financing under one roof, making it easier to manage your finances and projects.
If you have paid back at least 20% of the current market value of your home, the Homeowner's Kit is a comprehensive and versatile financing solution that consolidates all our mortgage products, including the mortgage line of credit.
One Application, One Notary
It takes only one application to access all sources of financing. Once approved, you pay the notary fees to establish your mortgage warranty, and you don't have to visit the notary again to use any of the products in the Kit. You are free to change the nature of your financing before maturity, depending on the conditions of each product and the authorized financing limit.
An Example of How to Use the Kit
- Let’s say you purchased a home for $200,000.
- We financed you $150,000 (80% of the property value) amortized over 25 years.
- A few years later, the balance of your loan is $90,000.
- You now have access to $60,000 in financing.
- You want to renovate your kitchen at the cost of $26,000.
- You want to buy a new car for $22,000.
With the Homeowner’s Kit you could opt for different combinations of mortgage financing. Here are three potential scenarios.
| Scenario | Remaining Balance on the Current Loan: $90,000 | Kitchen: $26,000 | Car: $22,000 |
|---|---|---|---|
| Scenario 1 | Mortgage loan 5-year fixed rate term 10-year amortization |
Mortgage line of credit | Mortgage loan 5-year variable rate term 5-year amortization |
| Scenario 2 | Mortgage loan 3-year fixed rate term 15-year amortization |
Mortgage line of credit | |
| Scenario 3 | Mortgage loan 5-year variable rate term 10-year amortization |
Mortgage line of credit | Mortgage loan 3-year fixed rate term 3-year amortization |
You choose the term, rate and payment frequency for each block of mortgage loans. For the line of credit, you can choose to pay back only the interest, a fixed amount or a percentage of the balance. In addition, each net dollar paid back automatically becomes a dollar of credit at your disposal.
Advantages of the Homeowner's Kit
The Homeowner’s Kit is a good financing solution for many reasons.
- It gives you a flexible source of financing that is easily accessible by cheque, telebanking, Internet or automatic banking machine.
- It lets you benefit from the best interest rates offered with each integrated product, since your property is placed under warranty.
- It lets you provide for your current and future borrowing needs as you please.
- It can be used to cover all kinds of projects—renovating, buying a cottage, putting in a swimming pool, landscaping, traveling, taking a year off, starting a business, going back to school, turning your basement into an income-generating apartment, buying a new car, etc.
- It lets you contribute the maximum to your RRSP to lower your tax bill, giving you the opportunity to use your tax return to pay down the capital.
- It helps you save on interest by providing a great way to group your different types of financing under one roof.
- It allows you to manage your credit as you see fit.
The following examples demonstrate that the Homeowner’s Kit makes a big difference for all kinds of expenses.
|
The Savings Picture Without the Homeowner's Kit
|
||||
|---|---|---|---|---|
| Loan | Interest Rate | Monthly Interest1 | Monthly Payment2 | |
| Mortgage loan | $150,000 | 3.99% | $461 | $9063 |
| Line of credit | $15,000 | 8.00% | $54 | $3044 |
| Major department store credit cards | $5,000 | 30.00% | $125 | $150 |
| Car loan | $10,000 | 7.00% | $30 | $2015 |
| Furniture loan | $10,000 | 8.00% | $35 | $2016 |
| Total | $190,000 | $705 | $1,758 | |
|
The Savings Picture With the Homeowner's Kit
|
||||
|---|---|---|---|---|
| Loan | Interest Rate | Monthly Interest1 | Monthly Payment2 | |
| Mortgage | $150,000 | 3.99% | $461 | $9067 |
| Mortgage line of credit | $40,000 | 3.50%8 | $62 | $3959 |
| Total | $190,000 | $523 | $1,301 | |
| Monthly savings/liquid assets achieved | $182 | $457 | ||
| Annual savings/liquid assets achieved | $2,184 | $5,484 | ||
The numbers speak for themselves. To find out more about the Homeowner's Kit, make an appointment with an advisor at one of our branches, or by calling 514-252-1846 or 1-800-252-1846.
Legal notice
APR: Annuel percentage rate.
1. Example of average interest rate.
2. The monthly payment includes both the interest and the principal.
3. Hypotheses used to calculate the payment advantages: Example based on a $150,000 mortgage loan, a 5-year term, a remaining amortization period of 20 years, and a 3.99% interest rate which is equivalent to the APR.
4. Example based on a $15,000 loan, a remaining amortization period of 5 years, and an 8.00% interest rate which is equivalent to the APR.
5. Example based on a $15,000 loan, a remaining amortization period of 5 years, and a 7.00% interest rate which is equivalent to the APR.
6. Example based on a $10,000 loan, a remaining amortization period of 5 years, and a 8.00% interest rate which is equivalent to the APR.
7. Example based on $150,000 mortgage loan, a 5-year term, a remaining amortization period of 20 years, and a 3.99% interest rate which is equivalent to the APR.
8. Example of rate based on the Laurentian Bank line of credit base rate. The interest rate given depends on the financial situation of each client. The variable rate can be modified without notice. The usual account transaction fees apply. Click here for information on the rates in effect.
9. Example based on a $40,000 loan, a remaining amortization period of 10 years, and a 3.50% interest rate which is equivalent to the APR.
