All-in-One Mortgages or otherwise known as re-advanceable mortgages are similar to HELOC’s (Home Equity Line’s of Credit) but also quite different. The major difference is that with an All-in-One product as you pay down the principal on the mortgage the amount gets automatically re-advanced to you through the HELOC portion, without having to reapply! In a standard HELOC you can only access 65% of the total equity in your home and to access more you must wait for the house to increase in value.
This can be great choice for real estate investors!
The main function of the All-in-one, enables investors to put money towards the down payment on their next property without having to re-apply to use the built-up equity in the property.
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.
A re-advanceable line of credit is the best way to continuously access equity within your properties, but if you plan to use the credit for both personal and investment purposes, the All-In-One products are a good option as they make tracking tax-deductible investment interest easier thanks to the multiple account components contained within these two offerings. For instance with National Bank’s All-in-One product, you can have up to 99 different accounts. Does anybody really need this many accounts – probably not but it is an option!
Not all All-in-One or re-advanceable products are the same, so having a mortgage professional who understands your needs and the unique differences that these products offer, is recommended so you know which product to choose over the other.
As a licensed mortgage professional, it is my job to make sure the product you choose is right for you. Not all All-in-One products are built the same! Contact me so I can educate you on the differences in the marketplace.