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Home Account® - Line of Credit

Introducing an innovative way to meet all your borrowing needs.

Man and woman discussing house plan sketch.
  • Home Account is a flexible home equity line of credit that can be used to purchase a home or borrow funds for other purposes to turn any dream into reality*
  • Use money borrowed (up to available total credit limit) for any purpose* — consolidate debt, invest, fund a child’s education, renovate a home or take a vacation
  • Get convenient and fast access to funds — redraw funds when needed
  • Take advantage of minimum monthly payments of interest only for the first 5, 10 or 25 years
  • Pay off the entire loan at any time without penalty — Home Account is fully open for prepayment
  • Convert to another MCAP mortgage at any time without penalty (certain conditions may apply)
  • Eligible for MCAP’s Secondary Home and Bridge Financing loan programs
Home Account Product Details
Loan Purpose
  • Purchase
  • Purchase Plus Improvement
  • Ports & Replacements
  • Refinance / ETO
Property Type
  • Owner-occupied only (maximum 4 units)
  • Secondary Home (maximum 1 unit), please
  • see Secondary Home fact sheet for details
  • Rural properties based on exceptions basis only.
Rate
  • Based on MCAP Prime, see Professor rate table
  • Variable with immediate rate reset when MCAP Prime changes
Loan Amount
  • $50,000 to $750,000
Maximum (LTV)
  • 65%
Down Payment
  • Must be from own resources (no gifts)
Payment Frequency
  • Monthly
Accessing Funds
  • Borrowers can access some or all of their credit by requesting funds through their lawyer at time of closing
  • Borrowers can also access funds throughout their term by going online, or by contacting MCAP’s Servicing Centre to transfer funds to their designated bank account
Monthly Statements
  • Detailed monthly statement will be provided within 10 business days after the payment date
Term
  • 25 year term, fully open, principal amount can be paid back in part or in full at any time without notice or penalty
Repayment Options

This graph illustrates a typical Home Account, with a 10-year interest only period and subsequent amortizating total credit limit.

Home Account Repayment Options

A. Represents a time period when the balance can still be drawn up to the total credit limit of $100,000. Only interest payments are required on the outstanding balance.

B. Represents a time period 15 years into the Home Account term. At this time the outstanding balance is $25,000 with eligibility to draw up to the available total credit limit, in this case $70,000. During this period payments consist of principal (if applicable) and interest.

  • For loans with 25 year interest only periods, make minimum monthly payments of interest only for the entire term.
  • For loans with 5 or 10 year interest only periods, make minimum monthly payments of interest only for the first 5 or 10 years. At the end of this period, the total credit limit will simply amortize down over the remaining life of the mortgage (15 or 20 years)
  • For Home Account loans which have an interest only period of 5 or 10 years, borrowers are only obligated, during this time, to make minimum monthly interest only payments on the outstanding balance:
    • Upon completion of the interest only period, the total credit limit will convert to an amortizing total credit limit. Depending on the outstanding Home Account balance, payment amounts may be adjusted to cover both principal and interest payments.
  • Home Account is registered for a 25 year term. At the end of the initial 5 or 10 year interest only period, the remaining term will be amortized (e.g., at the end of the 5 year interest only period, the mortgage will have a remaining amortization of 20 years.)
  • The required variable monthly payment will be deducted automatically from the designated bank account.
  • Home Account is fully open, and can be paid off at any time without notice or penalty.
  • Additional monthly payments or lump sum payments can be made by simply calling an MCAP Customer Service Specialist.
  • For further explanation, contact your Business Development Manager.
Set-Up Fees Borrowers are responsible for the:
  • Appraisal fee (if applicable)
  • Legal/closing fees
Other
  • Portable
  • Mortgages transferred from other institutions are not eligible
  • Borrowers can review their available funds and transaction history online 24/7
  • Funds may be used for any purpose except default management
*Not eligible to be used for default management.
Subject to change without notice.

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