What Are Collateral Charge Mortgages?

February 23rd, 2016

Collateral charge mortgages are mortgages registered on the systems with different terms and conditions than a standard mortgage charge. The downfall of collateral charge mortgages is that they are not eligible for free transfers. So if you ever want to switch mortgage lenders in the future, you have to completely discharge the collateral charge mortgage and register a new mortgage charge on the system. The costs of doing this fall upon the borrower. The costs include legal fees (about $850) and an appraisal (about $300).

ALL TD, National Bank and Tangerine mortgages are collateral charges, so it is best to avoid these lenders for a mortgage.

Also all “all-in-one” products (mortgage and HELOC under the same account) are collateral charges, so if you do not need a HELOC, it is best to avoid these products.

Why To Avoid TD, National Bank and Tangerine

February 14th, 2016

Since 2011, all TD, National Bank and Tangerine mortgages are registered as collateral charges on the system. Collateral charges are NOT transferable, so if ever want to switch lenders, you will have to pay hefty refinancing charges. Of course, none of the service representatives at these banks will tell you this when signing up for a mortgage with them.

REMINDER! Minimum Down Payment Increases For Houses Over $500K Starting Monday!

February 12th, 2016

Remember, starting Monday, minimum down payment is increasing for home purchases over $500,000. Minimum 5% down on the first $500,000 and minimum 10% on the remaining amounts.