It’s nice to see MCAP’s Home Account credit line come back.

Its re-launch is almost symbolic of how things have returned to normal after 2008’s historic credit freeze.

MCAP shelved the Home Account back in October 2008 when the credit crisis made funding it too difficult. Its return means that qualified MCAP clients can once again add a line of credit (LOC) to their MCAP mortgage, with no extra application or hassle. (Customers can also get a Home Account in first position if they desire.)

The Home Account is fully open with no penalty for pre-payment. It also comes with an interest-only option.

Here are a few key details:

Maximum LTV:  80%
Minimum Beacon:  650 (no judgements or bankruptcies)
Minimum GDS/TDS:  35/42, or 44/44 for 680+ Beacons
Qualifying Rate:  3-year discount fixed rate
Allowable Properties:  Owner occupied up to 4 units
Second homes:  Yes
Maximum Loan:  $750,000 (some exceptions apply)
Portable:  Yes
Funds access:  Transfer funds to your bank account online or via MCAP’s call center (no cheques or debit card at this time)

Based on the allowable debt ratios and qualifying rate, the Home Account is one of the easiest secured LOCs to qualify for.

If we had just one wish, however, it would be for a readvanceable option. That’s where the LOC’s available credit automatically increases as you make principal payments on your mortgage. (MCAP is apparently considering this as a future enhancement.)

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As a side note, brokers will find it noteworthy that MCAP is offering a trailer model on this product. It’s one of the only lenders doing that. If you’re a broker, contact your MCAP BDM for more details.