Readvanceable Mortgage

A combined mortgage + HELOC product where each dollar of principal paid on the mortgage automatically reopens the same dollar of HELOC capacity. The combined facility typically caps at 80% loan-to-value of the home, with sub-accounts that let you keep different uses of the HELOC separated for CRA tracing.

Without a readvanceable, every advanced strategy (Investment Leverage, Cash Damming, Debt Swap) requires a fresh HELOC application, fresh paperwork, fresh underwriting, fresh chance to be told no. With one, the borrowing capacity grows quietly in the background.

The cheapest moment to set this up is at renewal, when there's no penalty in the way. Mid-term it usually costs an IRD penalty large enough to wipe out years of benefit. Full strategy at Readvanceable Mortgage Setup.