Personal Finance Canada

1193 readers

1 users here now

Come and discuss anything related to personal finance, directly or indirectly, with other Canadians!

founded 1 year ago

MODERATORS

[email protected]

Using mortgage cash account as HISA (lemm.ee)

submitted 1 year ago by [email protected] to c/[email protected]

11 comments fedilink hide all child comments

Anybody have experience using BMO mortgage cash account? This is where you can pre-pay down the principle and then supposedly withdraw those funds when needed. I’ve been frustrated by the terms and conditions on my daily HISA so thinking this could be a way to get the equivalent of 5.15% (my current mortgage rate) for money that I don’t need to touch frequently. Seems like I can’t do better than this even in a HISA ETF.

My concerns are: am I thinking about this the right way? (Paying down principle on mortgage is equivalent to earning that percentage in a regular bank account?). Does this BMO mortgage feature really work like this? It wasn’t advertised to me, I had to dig into it.

you are viewing a single comment's thread
view the rest of the comments

[–] [email protected] 1 points 1 year ago

I don't have experience myself, but you sound spot on. You will find a lot of YouTube financial advisors advertising this as a way to pay down your mortgage in half the time.