We’ve been waiting for this announcement for a long time. Laurentian Bank of Canada’s (LBC’s) Homeowner Kit is now available everywhere LBC lends.
Prior to last week, it could be had only in Quebec (since 2006) and Ontario (since 2008). Now borrowers in BC, Alberta, Nova Scotia and other provinces are eligible too.
The Homeowner Kit is a low-cost hybrid mortgage and line of credit all in one. It includes:
The LOCs are manually readvanceable. That means you can call LBC up to four times a year to increase your available credit after you make principal payments on your mortgage portion(s).
LBC plans to make the Homeowner Kit automatically readvanceable in the future—which would then make it suitable for things like the Smith Manoeuvre.
The Homeowners Kit’s main advantages are:
LBC’s Homeowner Kit is one of the most competitive hybrid mortgages there is. Once it gets an automatically readvanceable LOC, it’ll also be one of the top readvanceable mortgages.
It’s a good product. I just wish they would let people to make lump prepayments on any payment date instead of just once a year.
I second that. Fortunately, Laurentian also lets folks double-up any regular payment. On a fixed rate, for example, that effectively adds about 5-6%+ in flexible pre-payment privileges. LBC also lets the borrower make the single lump-sum pre-payment any time during the year. Some lenders force you to make it only on the anniversary date.
Any idea what the fees are, Manulife One account charges $14/month?
Hi TSP, Laurentian charges no monthly fees for the Homeowners Kit.
I’m a fan of this product, and have had great feed back from my clients that I have placed in it todate.
Your email address will not be published. Required fields are marked *
Save my name, email, and website in this browser for the next time I comment.
Join our mailing list to receive the latest news and updates as they happen. Unsubscribe any time.