# Renewal options for Mortgage with HELOC



## Eclectic12 (Oct 20, 2010)

Okay ... so previously I've broken a mortgage to get a better rate and 
paid out a mortgage when I was not buying a replacement property fast enough.

I am now approaching renewal with a different situation. Specifically, I 
have a mortgage with HELOC coming due in about a year and a half,
that will probably have about $35K left on the mortgage.


Some questions about my options for renewal day:

a) can I write a cheque on the HELOC paying off the $35K mortgage?
If so, will the HELOC terms stay the same?

b) if I move the mortgage to another institution, does new institution
take on the HELOC as well? If so, same terms or re-negotiation?
(i.e. when I talk to other institutions, do I need to negotiate mortgage
plus HELOC terms?)

c) if I sell some enough investments to pay-off the mortgage and keep 
the HELOC, can the HELOC terms be revised to my detriment? 



Cheers


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## Shayne (Apr 3, 2009)

You should really be asking your lender, but I will answer based on my knowledge of a couple of lenders.

A. Yes, No. 

B. No. You have to negotiate again.

C. No.


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## Eclectic12 (Oct 20, 2010)

Shayne said:


> You should really be asking your lender, but I will answer based on my knowledge of a couple of lenders.
> 
> A. Yes, No.
> 
> ...


The plan is to talk to the vendor.

However, I've always found it useful to see what others have experienced. That way if anything strange comes up - I know to dig further.


Cheers


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## houska (Feb 6, 2010)

Eclectic12 said:


> c) if I sell some enough investments to pay-off the mortgage and keep
> the HELOC, can the HELOC terms be revised to my detriment?


Sounds as if you have both nonregistered investments and a mortgage. You may already be doing a sophisticated leveraged investing / tax deductibility of interest manoeuvre. If not, and you do not currently deduct your mortgage interest as an investment expense, you could consider making sure your refinancing allows you to lock this in as "free money" from the government.


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## Eclectic12 (Oct 20, 2010)

houska said:


> Sounds as if you have both nonregistered investments and a mortgage. You may already be doing a sophisticated leveraged investing / tax deductibility of interest manoeuvre. If not, and you do not currently deduct your mortgage interest as an investment expense, you could consider making sure your refinancing allows you to lock this in as "free money" from the government.


Hmmm ... I'm already using the equity in my home via a Home Equity Line of Credit (HELOC) to fund investment buying, which makes the HELOC interest tax deductible.

I've never heard of a way to deduct the actual mortgage interest.


Can you explain this?


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