Skip to main content

Home Account Plus - Line of Credit

Put your home equity to work to meet all your borrowing needs — Home Account Plus is a convenient addition to any standard mortgage held with MCAP, giving maximum borrowing flexibility.

Family on the front yard of a house.
  • A Home Account Plus secured line of credit gives borrowers the freedom to access the equity in their home for anything they want*
  • 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 Plus is fully open for prepayment
  • Eligible for MCAP’s Secondary Home program
Home Account Plus Product Details
Purpose
  • Purchase (combined with MCAP First Mortgage)
  • Refinance / Equity take-out — Borrowers can enjoy their money now and not have to wait until they sell their home. Take advantage of a secured line of credit based on MCAP Prime that can be used for any purpose.* Up to 80% LTV with the combined first mortgage and Home Account Plus line of credit.*
  • Purchase Plus Improvements — MCAP’s Purchase Plus Improvements Option allows renovation financing for the cost of improvements to be added to any mortgage.
Eligible Borrowers
  • To open a Home Account Plus line of credit, the first mortgage must be amortizing and must be held with MCAP. The first mortgage must stay with MCAP while they have a Home Account Plus line of credit.
Property Type
  • Owner-occupied only (maximum 4 units)
  • Secondary Home (maximum 1 unit), please see Secondary Home fact sheet for details
  • Rural properties on exceptions basis only
Rate
  • Based on MCAP Prime
  • Variable with immediate rate reset when MCAP Prime changes
Loan Amount
  • $10,000 to $750,000 (including MCAP first mortgage and Home Account Plus)
Maximum (LTV)
  • Up to 70% including MCAP first mortgage and Home Account Plus. (LTV up to 80% on exception). The HELOC portion cannot exceed 65%
Down Payment
  • Must be from own resources (gifted down payment not accepted).
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
  • A 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 penalty
Repayment Options

This graph illustrates a typical Home Account Plus, with a 10-year interest only period and subsequent amortizing 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 Plus 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 Plus balance, payment amounts may be adjusted to cover both principal and interest payments.
  • Home Account Plus 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.) For further explanation, contact an MCAP Business Development Manager.
  • The required variable monthly payment will be deducted automatically from their designated bank account.
  • Home Account Plus is fully open, and can be paid off at any time without penalty.
  • Borrowers can make additional monthly payments, or make lump sum payments by simply calling an MCAP Customer Service Specialist at 1-800-265-2624.
  • Borrowers choosing to transfer out or pay out their first mortgage from MCAP, must also transfer out or pay out their Home Account Plus second mortgage.
Set-Up Fees

Borrowers are responsible for the:

  • Appraisal fee (if applicable)
  • Legal/closing fees
Other
  • Portable
  • 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.

Mortgage Tools