Revolving Clause

Borrow against the value of your property

The revolving clause is included in your National Bank mortgage contract: it provides you with access to additional funds that grow as you reimburse your loan. This means you can at any time borrow back your unused principal up to the registered loan amount.

Example

Let's say you purchase a $100,000 home and make a $50,000 down payment: your loan amount is $50,000 (purchase price minus the down payment). Since your mortgage is automatically recorded at 100% of the purchase price of the property ($100,000), you have $50,000 in unused principal (mortgage value minus loan amount). You can use this unused principal to finance your personal projects.

Now let's say that after a few years of paying back the loan, you've repaid $10,000 of your principal: your borrowing capacity has risen to $60,000 (repaid principal plus the unused principal). Just think of all the things you could do with that money!

Get a personal loan at a mortgage loan rate

The loan is amortized just like a personal loan, but you'll pay the current mortgage rate which is significantly lower than the interest rate on a personal loan.

What's in it for you:

• fast response and no legal fees when you request access to unused principal 
• set the term and amortization period for each portion you borrow
• repay your mortgage through automatic debits
• prepayment options available on request
• you decide how to spend the funds you borrow*
• your additional funds can be granted in the form of a Superior Flex Line (minimum $25,000).

*Conditions apply to the use of funds by homeowners with CMHC (Canada Mortgage and Housing Corporation) and Genworth-insured mortgages.