My mortgage is a massive credit line that is secured against the house. It's called an RBC Home line. Every month they take out only the interest for the month - there is no payment. The whole thing floats at prime.
They'll give you 75% of the value of your home.
So if your place is worth $400K, they'll let you borrow up to $300K. Let's say you only owe $200K on your house, that means you have $100K to play with.
Makes sense?
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