# Cash Damming with no HELOC??



## pplui (May 29, 2014)

I have my principal residence ($500K market value) with no HELOC

We have several rental properties, with more than 200K/year expenditures

Can we implement cash damming without having HELOC in our primary residence?
We have some HELOC in some rentals.


Other option would be to refinace to have HELOC
Our mortgage rate is quite low (variable, right now 2.66%) 
If we would have HELOC, it will be at prime+0.5% (3.7%as today)

How can i calculate the savings if i have HELOC?
Thanks!!


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## Spudd (Oct 11, 2011)

Is there a mortgage on your principal residence?


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## pplui (May 29, 2014)

Yes, we have a mortgage with Scotiabank, no HELOC, variable rate, 2.66%


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## Mortgage u/w (Feb 6, 2014)

You need a line of credit to pay for the expenses as they come in and preferably 2 chequing accounts to simplify things.

I don't see how it would work without a HELOC on your primary residence. The HELOCs on the rental properties are already tax deductible so no extra benefit there.

With $200k in yearly rental expenditures, I don't think cash damning is your best solution. You should look into incorporating instead.


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