What is a TD Home Equity FlexLine (HELOC)?
TD Home Equity FlexLine is a way to use your borrower's most powerful borrowing tool – their home. As they pay back the amount they owe, the amount of credit available to your borrower increases until it reaches their credit limit.
TD Home Equity FlexLine vs. a mortgage
TD Home Equity FlexLine (HELOC) and a mortgage are both credit products where your borrower's home acts as collateral. However, here are some key differences:
With a mortgage:
Your borrower gets a loan for a single amount. That amount plus interest must be paid back over time.
With a TD Home Equity FlexLine:
Your borrower gains ongoing access to credit (Revolving portion). As they pay down their outstanding balance, their available credit increases up to their credit limit. They can also add a term portion at any time.
Follow these steps to submit a Flexline deal to TD Canada Trust on Finmo
Once in the application:
Set the “Goal” to “Refinance” or “Purchase” for owner occupied or rental properties and adjust the mortgage details accordingly in the calculator.
Start a new submission to TD Canada Trust in the "Submit" section
Scroll down to the "Mortgage request" section and click on "Edit" under GDS/TDS. and select the "Qualifying details" tab
Enter the greater of the benchmark or revolving portion customer rate (Net Rate) + 2% for the Interest Rate.
Set the "Compounding period" to "Monthly"
add the "Amortization" as 25 years and "Save".
4. Next scroll down to the "Mortgage information and request details" section and click on "Edit".
a. Click the "Payment details" tab and then select "First" as the "Mortgage Type".
b. Set the Loan Type to “Secure LOC”
c. Enter the Prime Rate from the Broker Rate sheet for the interest rate and set the "Payment Frequency" to "Monthly".
d) check off "Blended amortization"
For Home Equity Flexline Without a Term Portion:
Rate Type: Variable
Term Type: Open
Compounding Period in Payment Details: Monthly
Term: 5 yrs
For Home Equity Flexline With a Term Portion:
Rate Type: Fixed or Variable
Term Type: Closed
Compounding Period in Payment Details:
Fixed Rate: Semi-Monthly
Variable Rate: Monthly
Term: 1, 2, 3, 4, or 5 years
Items to Include in "Submission notes" to the lender:
Indicate that this is application is for the Home Equity Flexline product
The discretion to the revolving rate is: (From Broker Rate Sheet)
The Amortization is: (25 yrs with no term portion, 5 - 30 yrs with a term portion)
Credit Limit amount (<= Original Plan Limit, max 65% LTV)
Any rate discretions received on the revolving portion
Advance amount requested by the customer at closing (must be at least equal to the amount of the Term Portion, if there is one)
Term Portion amount (if applicable)
Any rate discretions received on the term portion (if applicable)
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