- We currently using TD DI for self-directed accounts.
- We do regular banking and have HELOC (not being used) with CIBC.
- Looking to do a substantial increase in the CIBC HELOC amount.
- Rationale - looking to possibly buy a second property for retirement, and want to be able to jump on a good opportunity without any constraints regardless of job situation at that time.
- If we do buy, we would very shortly thereafter sell the main house (i.e. HELOC used just to bridge a short period).
- Only intending to use the HELOC if we happen to come across the perfect property in the next couple years before we sell our main property (ideally, we will sell the main property first, THEN look for a second, retirement property, staying with relatives in the interim).
- Current HELOC is at prime+0.35%
- CIBC has approved two options to increase our HELOC to about 3x the current value:
- Add second HELOC for 2x current HELOC amount at a rate of prime+0.5% (rate not as good as current HELOC! and will result in a new second discharge fee to be paid when we sell).
- Increase existing HELOC to the new amount with a rate of prime IF we transfer $250k in investments to them. (No new discharge fee! Great rate! But not fond of CIBC IE).
Then again, this entire HELOC increase is just for contigency, so we may not use it ... so maybe that extra discharge fee with option A is the easiest way to secure the OPTION of buying a property that might come along and require immediate attention!
Opinions/advice for this situation?
Regards,