Retirement Line of Credit

For many homeowners, the principal residence is their foremost most important asset. When in need of financing, some homeowners will be forced to sell their property to access the equity that comes from the market value of the property.

With the Retirement Line of Credit,^1,2if your residence is fully or largely paid off (with the balance of the existing financing not exceeding 25% of the current market value of the property), you could have access to a part of the current market value of your property to secure the financing needed to bring projects to fruition... while still remaining the homeowner.

A flexible financing solution

With the Laurentian Bank Retirement Line of Credit, you could access up to 50% of the current market value of your principal residence. Once your credit limit has been established, you get to use the funds as you see fit. For example, your line of credit could help you face unexpected expenses, supplement your current income, renovate, travel, go back to school, start a company or consolidate your debts while taking advantage of attractive interest rate.

Pay off your Retirement Line of Credit at your own pace by settling, at minimum, the monthly interest due on the outstanding balance of the line of credit. Every payment to reimburse the balance will correspondingly increase the credit available on your Retirement Line of Credit without having to re-apply for funds. You can pay off the borrowed amount in whole or in part at any time without indemnity.

Line of credit amount	Minimum $25,000 (new & limit increase)
Attractive interest rate	Very attractive variable interest rate. The rate fluctuates according to the Laurentian Bank line of credit base rate.³ Interest applies only to the funds used.
Easy access to funds	Your funds are easily accessible at any time: by cheque; at automatic banking machines; via LBCDirect services – online or by phone.
Flexible repayment options	Interest only (minimum of $10).⁴ You can also choose your preferred method of payment: percentage of the balance due; fixed payments. You may repay the balance due in whole or in part at any time without indemnity.

Consult our posted rates.

Option to convert into a mortgage loan

In addition, depending on your financial situation,¹ you could convert the balance on your Retirement Line of Credit, in whole or in part, into a mortgage loan to protect yourself from interest rate increases and make fixed regular payments.

The Retirement Line of Credit: more practical than a reverse mortgage

The Retirement Line of Credit is a more flexible financing product that costs less, and is not as binding as, a reverse mortgage, insofar as you can repay the minimum monthly interest on the autorized limit of the line of credit. Ask your Laurentian Bank advisor.

Have you ever thought about taking out line of credit insurance?

Protect your loved ones from life’s uncertainties.

Summary:

This financing product is for you if:

Your principal residence is paid off or your mortgage balance is less than 25% of the current market value of the property.
Your level of income makes it difficult to obtain a regular mortgage loan or equity line of credit.
You want to repay interest only on the borrowed amount.

This financing product is not for you if:

You're not a homeowner.
You're a homeowner whose equity on the property is more than 25% of the current market value of the property.
Your level of income does not allow you to pay off the monthly interest.

LBC: Laurentian Bank of Canada

Legal notice

1. Subject to credit approval. Some conditions apply, including regarding the eligible property type. Subject to compliance with LBC underwriting and qualification criteria. Qualification is based on several factors, including the borrower’s sufficient revenues to cover a reimbursement of capital and interest based on a 25-year amortization at the qualifying rate in effect for a home equity line of credit. The amount of financing granted is subject to credit approval by LBC and depends on the financial situation of each individual client.
2. The total debt secured by the mortgage on the principal residence, including the Retirement Line of Credit portion, must not exceed 50% of the current market value of the principal residence. The balance of the existing financing must not exceed 25% of the current market value of the property to be eligible. The Retirement Line of Credit is financing issued in the form of a home equity line of credit. Evaluation fees apply and may vary depending on the specific circumstances of each refinancing request. You must assume these costs. To find out the exact amount, please contact your advisor. No signature by power of attorney will be accepted. Only the homeowner(s) are authorized to sign mortgage documents. First-rank mortgage only.
4. The minimum payment must cover at least the accrued monthly interest. Minimum payment of $10.