Written by 4:02 PM Mortgage Industry News, Mortgage Tech News • 15 Comments Views: 32

Scotia STEP Now Automatically Readvanceable

Scotiabank Scotia has always had a solid readvanceable mortgage (the STEP), but it’s been plagued by one nagging problem.  Up until recently, you had to manually request a re-advance of credit when you made a principal payment.

No more.

The Scotia STEP is now automatically readvanceable.  If you pay down $100 in principal (the minimum increment), then Scotia automatically increases your authorized available line of credit by that amount.

This change has been a long time coming and it corrects the biggest fault of the STEP.  Mortgage planners and those considering the Smith Manoeuvre should be quite pleased by this new option.

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Last modified: April 26, 2017

Robert McLister is one of Canada’s best-known mortgage experts. A mortgage columnist for The Globe and Mail, interest rate analyst and editor of MortgageLogic.news, Rob has been covering Canada's mortgage market since 2007.

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