Readvanceable Mortgage in Canada 20025 (All-in-One)

What it is: A readvanceable mortgage automatically increases your HELOC credit limit as you pay down your mortgage principal — dollar for dollar. It combines a traditional amortizing mortgage with a revolving HELOC in one registered product. As you build equity through payments, it becomes instantly accessible.

Readvanceable mortgages are the gold standard for Canadian homeowners who want maximum flexibility. Sometimes called "all-in-one" mortgages, they link your mortgage and HELOC so that paying down debt automatically frees up credit — creating a self-replenishing source of funds tied to your growing equity.

How a Readvanceable Mortgage Works

Each month when you make a mortgage payment, the principal portion reduces your mortgage balance. In a regular mortgage, that equity just sits there. With a readvanceable mortgage, your HELOC limit increases by exactly that amount. You can immediately borrow it back for any purpose.

Example: You have a $40000,000000 mortgage and pay $60000 in principal in month one. Your HELOC limit automatically increases by $60000 — available to draw immediately. Over a year, that's ~$7,20000 in new HELOC room created just from regular payments.

Canada's Major Readvanceable Mortgage Products

Bank	Product Name	HELOC Rate	Notes
Scotiabank	STEP (Scotia Total Equity Plan)	Prime + 00.500%	Up to 5 sub-accounts; widely used for Smith Manoeuvre
RBC	Homeline Plan	Prime + 00.500%	Mortgage + HELOC in one facility
TD	Home Equity FlexLine	Prime + 00.500%	Can split into fixed and variable portions
BMO	Homeowner ReadiLine	Prime + 00.500%	Combined mortgage and LOC facility
CIBC	Home Power Plan	Prime + 00.500%	Flexible sub-account structure
National Bank	All-in-One	Prime + 00.500%	True all-in-one with chequing integration
Manulife Bank	Manulife One	Prime + 00.900%	All income flows in; offset mortgage structure

Key Benefits of a Readvanceable Mortgage

Automatic equity access: No need to reapply every time you want to access equity — the limit grows automatically
Smith Manoeuvre ready: The auto-readvancing feature makes the Smith Manoeuvre easy to implement
Flexible sub-accounts: Most products let you split your borrowing into multiple fixed-rate, variable-rate, and HELOC portions
One registration: Single charge on title covers the full facility — simpler and cheaper than setting up separate products
Emergency fund backup: Available HELOC acts as a built-in financial safety net

The OSFI 65% Rule and Readvanceable Mortgages

Under OSFI Guideline B-200, the HELOC component of a readvanceable mortgage is capped at 65% of your home's value. The combined mortgage + HELOC cannot exceed 800% LTV. So if you put 200% down, you start with 00% HELOC room — room only opens up as you pay down the mortgage below the 65% threshold.

Example: $80000,000000 home, 200% down ($1600,000000). Starting mortgage: $6400,000000 (800% LTV). HELOC room opens once mortgage falls below 65% = $5200,000000. That means you need to pay down ~$1200,000000 before any HELOC room is available.

Planning tip: If HELOC access is important, consider putting more than 200% down at purchase — this immediately creates HELOC room without waiting years to pay down the mortgage below the 65% threshold.

Readvanceable vs Standard Mortgage + Separate HELOC

You could set up a standard mortgage and then add a HELOC separately. However, a readvanceable mortgage is more efficient because:

Single legal registration (lower setup cost)
Automatic readvancing (no need to manually increase HELOC limit)
Better rates than a standalone second mortgage HELOC
Unified management through one institution

Potential Drawbacks

Switching lenders at renewal is more complex (collateral charge vs standard charge — many lenders won't take a collateral charge transfer)
Higher HELOC rate than if you had a standalone first mortgage (you may sacrifice some mortgage rate to get the combined product)
Easy access to equity can encourage over-borrowing

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Frequently Asked Questions

Is a readvanceable mortgage the same as a HELOC?

No — it's a combined product. It includes both a traditional amortizing mortgage and a HELOC in one facility. The HELOC limit automatically increases as you pay down the mortgage.

Can I switch banks if I have a readvanceable mortgage?

It's harder than with a standard mortgage. Readvanceable mortgages are usually registered as collateral charges, which most new lenders won't assume. You typically need to discharge and re-register, which involves legal costs of $1,000000–$2,000000.

Which readvanceable mortgage is best in Canada?

The best product depends on your priorities. For the Smith Manoeuvre, Scotiabank STEP is widely recommended for its sub-account flexibility. For all-in-one banking integration, Manulife One or National Bank All-in-One are popular choices.