Superior Flex Line

Have you built up some equity in your home and wish you had the cash to do some renovations, buy an investment or catch up on your unused RRSP contributions? After all, an extra few thousand dollars invested in your RRSP now can make a big difference later on when you retire. The Superior Flex Line can put a minimum of $25,000 or more in your pocket to spend as you wish.

Note: the Superior Flex Line is no longer offered, but remains active for existing Superior Flex Line holders.

Get the Money You Need, When You Need It

The Superior Flex Line makes borrowing quick and convenient. You can access your funds several different ways, without having to make a trip to the branch or having to fill out a form every time you need additional funds. Plus you get a very attractive interest rate.

Credit application

Maximize Your RRSP Contribution

With your Superior Flex Line, you can make your maximum RRSP contribution and even catch up on unused contribution room.

The net interest you pay on your borrowing is negligible when you consider the interest compounding on your RRSP contribution!

Example

Let's say your home is worth $170,000, and the status of your mortgage loan is as follows:

 

Value

Rate

Payments

Mortgage loan balance

$80,000

8.25%

$1,000

 

Over one year, you pay $6,400 in interest charges, and over 10 years you pay $37,000. But you have another option: use the value of your home ($170,000) to borrow up to 75% of what it is worth, which in our example would be $127,500.

This way, you save on loan charges and can access the funds you need to catch up on your unused RRSP contribution room. It's an option well worth considering when you compare the preferred rate on your Superior Flex Line and the return on an RRSP.

By integrating all your borrowing into a single Superior Flex Line account, you can take full advantage of its flexibility, and much more.

 

Value

Total borrowing capacity

$127,500

Mortgage loan balance

$80,000

RRSP contribution (RRSP loan at 9%*)

$40,000

Total loan (at a rate of 7.5%*)

$120,000

 

*Example based on total repayment over 10 years. Tax refunds are reinvested in an RRSP and the annual nominal yield is 9%. Amounts have been rounded off. The rates of 9% and 7.5% may vary depending on market trends.

In 10 years, at a rate of 7.5%, you will have paid the following in interest:

  • On the $40,000 amount: $16,690
  • On the $80,000 amount: $33,785 instead of $37,000.

In total, you will have paid $50,475 in interest while paying off all your loans. In the end, your investment will be worth $204,710 if you reinvest all your income tax refunds in an RRSP at 9% interest. This is equal to a gross yield of $154,265 on an initial investment of $40,000.

What's In It for You

  • Save, since you are exempt from most account fees (except for transactions at the counter).
  • Get an even better variable rate because of the collateral mortgage and your credit record.
  • You can use your convenient Superior Flex Line account for all your savings and credit transactions.
  • You can make your repayments by automatic monthly transfer from another bank account free of charge.

Choose Additional Protection

If you wish, you can add loan insurance (life insurance or life and disability insurance) to your variable-rate personal loan. For your convenience, the premiums are deducted automatically from your account.