January 12, 2010 - The key component missing from many mortgage products available today that would make them attractive options for investors is a re-advanceable home equity line of credit (HELOC) portion.
 
These more advanced products make money available on a HELOC as soon as a payment is made towards the amount owing on the mortgage.
 
This core function enables investors to put this money towards the down payment on their next property without having to re-apply to use the built-up equity in the property, says James Smythe, broker/owner of Dominion Lending Centres Central based in Mississauga, Ont.
 
The re-advanceable HELOC products typically enable an investor to finance the down payment for about three properties, depending on the amount of equity built up on their principal residence.
 
There are a number of banks that offer products that can consist of fixed rate and/or variable rate and HELOC portions. Both Smythe and Kevin Boughen, mortgage broker with Dominion Lending Centres AC Mortgage Services based in Shelburne, Ont., agree that three banks offer superior products of this nature. These include National Bank's All-In-One, Scotiabank's STEP (Scotia Total Equity Plan) and FirstLine Mortgages' (owned by CIBC) Matrix Mortgage Suite products.
 
"Every investor wants the power of a re-advanceable line of credit, because this is the best way to continuously access equity within your properties," says Boughen, whose primary business revolves around real estate investors. 
 

To read the entire article, pick up a copy of the January issue, currently on newsstands