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One important side note: The auto-readvancing is not available with Scotia's stated income program.
Posted by: Canadian Mortgage | May 28, 2009 at 01:06 PM
You state the biggest flaw over the step as in not being readvanceable, the true biggest flaw is trying to transfer or move this mortgage after it funds, good luck with trying to, as BNS registers the step with the 1st mtg, and makes it near impossible to transfer to another FI.
Posted by: Oliver | May 28, 2009 at 01:28 PM
Hi Oliver,
I'm not sure if that issue is Scotia-specific. It's really an issue with most readvanceables, wouldn't you say?
Cheers,
-rob
Posted by: Canadian Mortgage | May 28, 2009 at 01:39 PM
Any word on when this will actually be implemented on existing STEP accounts?
I just checked mine, assuming I'd see my LOC be increased by the amount I've paid down my mortgage, but everything's still the same.
Posted by: Michael_S | May 28, 2009 at 01:40 PM
Hi Michael, Not 100% sure to be honest. Best bet is to contact your branch on this one. - rob
Posted by: Canadian Mortgage | May 28, 2009 at 02:33 PM
Nice improvement. Greate to see a lender realizing the shortfalls with their products and fixing them.
Posted by: posterboy | May 28, 2009 at 03:42 PM
Posterboy--They are not doing it because it was a product shortfall, they chose to not have it readvanceable and are now doing so to keep up with the marketplace as they are losing market share. They finally got the risk area to sign off.
Posted by: Chris | May 28, 2009 at 04:18 PM
I signed my mortgage papers about a week after this came into effect (about a month ago). They had a great rate and the auto limit increase made it an easy choice. I do plan on doing an SM, but need to pay down my principle since the mortgage is right up to 80%.
Posted by: Canadian Finance | May 28, 2009 at 05:05 PM
You can add this if you have an existing STEP, it must be FCT insured or you can purchase FCT insurance and have it added on.
Posted by: Brokerbc | May 28, 2009 at 05:47 PM
Hi CF: I agree. This feature makes the STEP a much easier choice now. Even if you didn't do the Smith Manoeuvre, the manual process and $5000 minimum made it such a hassle to readvance funds before. Can't express how glad I am to see Scotia make this improvement. - Rob
BrokerBC: Thanks a bunch for passing that along.
Posted by: Canadian Mortgage | May 28, 2009 at 06:16 PM
Rob (and others)...
how does this STEP compare to the Manulife One or other ELOC products?
thanks,
Jeff
Posted by: bruins1970again | May 29, 2009 at 09:42 AM
Hi everyone. Be careful with readvancing with STEP. They have just increased the secured LOC rate from P to P + 1%. THAT'S FOR EXISTING CUSTOMERS ASWELL.
I've been with STEP for about a year now and was shocked that my secured LOC is now P + 1%. I've tried arguing with the bank on the value of having a written legal document, but they got some subsection z someplace alowing them to change the rates.
Just beware that is happening.
Ravi.
Posted by: Ravi and Manisha | June 17, 2009 at 01:13 PM
All banks have pretty much gotten on the same page for P+1 rates, not just Scotia. They are also looking for more ways to tie your lending and accounts in so it is harder to switch. In this Uber-competitive marketplace, check what is important and if you need to make a wholesale switch.
I did, and moved my entire portfolio to another f/i - they made it easy!
Posted by: mb | July 31, 2009 at 06:21 AM
I had a client and tried to switch them to another lender on a re-finance, out of Scotia. Their payout statement indicates, this mortgage is "NON-Transferable". Client could not move his mortgage and had to stay with Scotia.
www.missmortgage.ca
Posted by: Elizabeth Blair | January 16, 2010 at 08:20 AM
You cannot "switch" out of a STEP but you can "refinance" out of one. They are not fully closed mortgages.
Posted by: Yvette | January 16, 2010 at 11:46 AM