Are readvancable mortgages benefitial?

sweepsplayer · Joined: 27 May 2007 Posts: 2 1.86 Dollars($)

Do you know anything about readvancable mortgages? I was reading up on them at zoobat dot com/?p=57 but am not aware of any banks in Canada that offer them. Any help?

sarah · Joined: 19 Mar 2006 Posts: 25 5.06 Dollars($)

Hi Sweepsplayer,

Definitely, readvanceable mortgage is beneficial. This type of mortgage is divided into 2 parts. One part is called mortgage debt and another part is investment line of credit. While making payment to your mortgage, equally the amount gets re-advanced to the investment line of credit. Total interest amount accumulated in your investment line of credit get deduct from your taxable income.

Some Financial institutions (BMO, Scotia, and RBC) in Canada are offering this type of mortgage.

Thanks,
Sarah


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