Welcome to Natalie Korchuk Toronto Real Estate Sign in | Help
TD Mortgages To Become Collateral Charges

TD is making a big change with respect to how it registers its mortgages. 

Effective October 18, all new TD mortgages will be registered as “collateral charges.”

A collateral charge is a different way to secure a home loan than a standard mortgage. "The terms of a collateral mortgage are outlined in a loan agreement that's not registered," says Invis's Gary Siegle. "With a regular mortgage, the terms are in a 'registered document'."

Effectively, collateral charges allow lenders to change the interest rate and/or loan more money to qualified borrowers after closing, without involving a lawyer.* That saves the borrower legal costs if he/she needs to withdraw equity from their home.

In TD’s case, customers will now be able to register their mortgage for up to 125% of the value at closing. Hence, if one’s property value goes from $200,000 to $250,000, qualified borrowers will be able to withdraw most of that new equity without refinancing. 

Read more at http://www.canadianmortgagetrends.com/canadian_mortgage_trends/2010/10/td-mortgages-to-become-collateral-charges.html

Posted: Saturday, December 11, 2010 7:22 AM by Oleh and Natalie Korchuk
Filed under: ,

Comments

No Comments

Leave a Comment

(required)

(required)

(optional)

(required)

Comment Notification

Subscribe to this post's comments using RSS