A Redfrog Mortgage allows you to create separate loan blocks, in addition to your main variable-rate Redfrog account. Loan blocks can be variable or fixed-rate in any combination you'd like, up to a maximum of six.

Loan blocks can be helpful for tracking purposes. You may, for example, want to be able to see the debts you consolidated and monitor your progress in paying them down.

Or say you decide to write a Redfrog cheque to take advantage of an investment opportunity. Set up a loan block for this amount and you'll be able to track the interest paid on just this portion of your borrowings - a figure that will come in handy come tax season.

You might also use a loan block if you're self-employed and need to track a business expense such as a car loan.

While a Redfrog Mortgage only ever gives you one account, loan blocks enable you to see individual balances and even set up individual repayment plans. 

You can move as much as 90% of your original debt into loan blocks at any time for no charge. A fixed loan block can be particularly useful if you're concerned about rates going up. The term for a fixed-rate block can range from 6 months to 10 years. Note, however, that all Envision conventional mortgage terms and conditions will apply. Each payment will include both principal and interest and there is a 15% pre-payment limit. As well, in the event you want to go back to a variable-rate option, you will have to wait until the maturity date, or else pay the standard penalty.

For more information on fixed-rate loan blocks, please call us at 1-877-Redfrog or email us at info@redfrog.ca.

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