STEP Calculator Results

Unique to Scotiabank, the Scotia Total Equity® Plan can help you achieve your goals by making your home work for you. STEP can be initially set up with a borrowing limit of up to 80% of your home’s value, including up to 65% for line of credit products. After setup, the borrowing limit will gradually decrease to 65% over a 25-year period. STEP enables you to gradually reduce your overall borrowing level while still having access to your equity along the way.

Calculation results are approximations based on the data you have entered and for information purposes only. They are not intended to provide financial advice. Scotiabank does not make any representations or warranties with respect to the calculation results. All Scotia Total Equity Plan and mortgages product applications are subject to applicable credit approval, Scotiabank residential mortgage standards and maximum permitted loan amounts.

Available Borrowing Power* in year 1 is based on 80% of the Home Value less the total of the Mortgage Balance and Other Debt Secured by Real Estate. In subsequent years, Available Borrowing Power factors in the borrowing limit at that point in time. Calculations assume that the respective interest rates for any Mortgage and Other Debt Secured by Real Estate will remain constant over the entire amortization/repayment period, but actual interest rates may vary. Calculations assume all payments are made when due.

Specific to Mortgage Calculations: The rate entered is a sample rate and is not considered a rate guarantee. Interest is compounded semi-annually, not in advance. Making weekly/biweekly payments will have the effect of making an extra monthly payment every year and will shorten your amortization.

Specific to Other Debt Secured by Real Estate Calculations: Payments on the Other Debt Secured by Real Estate are estimated based on the monthly payment structure of a personal line of credit with an interest rate of 3.450% (Scotiabank prime rate of 2.450% as of April 14, 2021 plus 1%). The line of credit interest rate is not a rate guarantee.

The calculations assume that the interest rate and the prime rate remain the same until the line of credit is fully repaid. Interest is calculated on the daily debt amount but only added to the debt once a month. The amount of daily interest is calculated by subtracting payments and multiplying the unpaid balance of debt on which interest is payable by the interest rate then dividing by 12 months. Assumed monthly minimum payment will be the greater of 3% of the balance owing, or $50, subject to the minimum payment being no more than the outstanding balance on the statement. Calculations assume that all payments are made on the statement date and that no more than the minimum payment is made for each statement period.

The interest savings shown are for illustration purposes only and are calculated based on the difference between an unsecured borrowing interest rate of 19.99% (a typical interest rate on a credit card) and a secured line of credit interest rate of 3.450% (Scotiabank prime rate of 2.450% as of April 14, 2021 plus 1%). The calculation assumes repayment of the total amount entered under Consolidate Debt as a lump sum at each interest rate.

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*The borrowing availability under STEP.