For a lot of homeowners, their primary residence is their biggest asset. And when they need financing, they have to sell their property to access equity from its market value.
With the Retirement Line of Credit1, if your principal residence is fully or largely paid off (if the balance of the existing financing does not exceed 25% of the property’s current market value), you could have access to a percentage of its current market value in order to secure the financing you need to carry out your projects… while still remaining the homeowner.
A flexible and practical financing solution
With the Retirement Line of Credit, you could have access to up to 50% of the current market value of your principal residence. Once your credit limit is established, you can use the funds as you see fit.
Use the Retirement Line of Credit to, for example:
- Deal with unexpected expenses;
- Renovate your home (kitchen, bathroom, etc.);
- Pay for all or part of a secondary property or rental building;
- Buy a boat or motorized vehicle;
- Take your dream trip;
- Supplement your current income;
- Finance your children’s or grandchildren’s education;
- Consolidate your debts.
Pay off your Retirement Line of Credit at your own pace by reimbursing, at minimum, the monthly interest due on the outstanding balance. Every payment to reimburse the balance will correspondingly increase the credit available on your Retirement Line of Credit without you having to re-apply for funds. You can pay off the borrowed amount in whole or in part at any time, without indemnity.
Attractive interest rate
Easy access to funds
Your funds are easily accessible at any time:
Flexible repayment options
You can choose your preferred method of payment:
You may repay the balance due in whole or in part at any time, without indemnity.
Please note that you are responsible for paying property appraisal fees.
Option to convert into a mortgage loan
Depending on your financial situation4, you could convert the balance on your Retirement Line of Credit, in whole or in part, into a mortgage loan to protect yourself from interest rate increases and to make fixed regular payments.
The retirement line of credit: more practical than a reverse mortgage
The Retirement Line of Credit is a more flexible financing product that costs less and is not as binding as a reverse mortgage, insofar as you can repay the minimum monthly interest on the authorized limit of the line of credit.
LBC: Laurentian Bank of Canada
† Subject to credit approval and compliance with conditions applicable to the granting of the Retirement Line of Credit. Cashback of $500 is awarded if the authorized credit limit for the Retirement Line of Credit is $50,000 or more. Offer valid for each new application for the Retirement Line of Credit submitted between January 1, 2020, and December 31, 2020, as part of a purchase transaction or external or internal refinancing (with publication of a new deed of immovable hypothec). Limit of one cashback per mortgage guarantee. Cashback will be credited to the Retirement Line of Credit account once it has been opened and activated. When the cashback is remitted, the Retirement Line of Credit must be open and in good standing, and there can be no late payments or credit limit overruns. If the Retirement Line of Credit is closed in the 60 months following the date of activation, a portion of the cashback will have to be reimbursed, prorated for the remaining commitment period. This offer cannot be combined with any other offer, cashback or promotion applicable to a new Retirement Line of Credit. Subject to change at any time without notice.
1 Some conditions apply, including regarding the eligible property type. Subject to compliance with LBC underwriting and qualification criteria. Qualification is based on several factors, including the borrower’s sufficient revenues to cover a reimbursement of capital and interest based on a 25-year amortization at the qualifying rate in effect for a home equity line of credit. The amount of financing granted is subject to credit approval by LBC and depends on the financial situation of each individual client. The total debt secured by the mortgage on the principal residence, including the Retirement Line of Credit portion, must not exceed 50% of the current market value of the principal residence. The balance of the existing financing must not exceed 25% of the current market value of the property to be eligible. The Retirement Line of Credit is financing issued in the form of a home equity line of credit. Evaluation fees apply and may vary depending on the specific circumstances of each refinancing request. You must assume these costs. To find out the exact amount, please contact your advisor. No signature by power of attorney will be accepted. Only the homeowner(s) are authorized to sign mortgage documents. First-rank mortgage only.
2 Ask your advisor for the current line of credit base rate.
3 The minimum payment must cover at least the accrued monthly interest. Minimum payment of $10.
4 Some conditions apply. Subject to credit approval by LBC. The amount of financing issued depends on the financial situation of each individual client.
Talk to an advisor to make sure this solution is right for you.
Call 514-252-1846 or 1-800-252-1846 (toll-free) to make an appointment today.