Quote:
Originally Posted by V
I initially used my unsecured line of credit to invest some money. Now I have an investment account, and my line of credit is empty. Of course, now I'm about to take another 40k out of my LOC to pay directly on my mortgage to bring it under the 80% mark for my renewal in September. If I can save on all of those CMHC fees I will be paying far less in differential interest (LOC at 5.4%, mortgage at 2.5%) than I would be in fees.
I also find the LOC useful because I make 1/3 of my income in one month, so the LOC can be nice to tide me over until the lump sum payment comes in.
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You don't have to pay CMHC fees again when you renew a mortgage. You pay them once per property. If you refinance that house you pay the difference between what you paid before and the new value.