What is an all-in-one product. An all-in-one product combines your chequing and savings accounts; a mortgage; and a home equity line of credit in an account.
The Jenny Credit is a product that consolidates all your bank accounts so that your debt is offset by your chequing and savings accounts. Because all your accounts are combined, the positive balance of your chequing and savings accounts offsets the negative balance on your mortgage and home equity line of credit, which helps save you from paying interest charges on the entire amount owed. .
The Jenny Credit at a variable interest rate equal to the Bank of Canada’s policy rate + 1 per cent, which is currently 4 per cent. For a home equity line of credit, the maximum amount of credit you can access through National Bank is determined by a loan-to-value ratio. Like most Canadian financial institutions, the line of credit must not exceed 65% of the value of the property.
The bank also offers something called fixed payments option, which allows you to determine the main repayment amount based on your budget and your income.
By combining all your debts into a home equity line of credit, you can save on a number of interest expense payments. For example, if you have a 5 percent car loan, an 11 percent credit card, a large shopping center credit card at 26 percent, your combined debts would be subject to all-in – one of the National Bank with an interest rate of 4 percent.
A disadvantage of the all-in-one product is that the interest rate on your mortgage is higher than the 5-year average interest rate, which is currently 2.55 per cent. Subjecting your mortgage to the National Bank rate of 4 percent reflects a 1.45 percent surcharge. Overall, the Jenny Credit is a product that provides the ultimate benefit with access to a home equity line of credit.