Skip to main content

How to get "untrapped" from your collateral mortgage

Image
By
There has been a lot of controversy lately over collateral mortgages since CBC's report on TD. Although overall it is much more difficult to get out of one of their mortgages, I am pleased to be able to offer another alternative. First National will now allow transfers to them on collateral mortgages. They are Canada's largest non-bank lender and offer exceptional rates and service. 

Here are a few highlights to their program:
·         Your current mortgage must be insured
·         You are able to keep your current amortization (even if it is over 30 years) which in turn keeps your payments low. It is important to note that if you were to refinance, you would have a maximum amortization of 25 years 
·         You get Access to First National’s best rates
·         Standard documents and qualification will be required
·         $1,000 of the penalty/discharge from your current lender can be capped into the mortgage

Here is an example of what they could do for you:

Current lender:
LTV: 92%
AM: 32yrs and 8 months
Rate: 4.25%
Registered: Re-advanceable
Discharge Penalty: $5,000

Straight Refinance to First National:
LTV:92%
AM: 32yrs
Rate: Best rate 3.09%.
$1,000 discharge capped into Mortgage.
Client pays remaining $4,000 of the discharge
Client pays legal fees

How do you know if your mortgage is a Running Account or not? If you go to Land Titles @ https://www.bconline.gov.bc.ca/ you can get the Form B for the mortgage. On page 2 you will see the below. This is where you will find out how it was registered. If it is checked off as YES you will need to do a refinance conventionally or a no new money refinance for insured. If it is check off as NO you can do a Switch.
 
For more information on this excellent offer or for any mortgage questions, contact me today.

www.christinebuemann.com

For more information on collateral mortgages, please refer to my previous post http://christinebuemann.blogspot.ca/2013/01/what-are-collateral-loans-and-what-is.html



Labels:
Location: 1596 3rd Avenue, Prince George, BC V2L 3G4, Canada

Comments

Post a Comment

Popular posts from this blog

Who is Computershare and why are they registered on title?

By
If you are using a non-bank lender for your mortgage, you may notice that your mortgage has been registered in the name of “Computershare Trust Company of Canada”. This registration does not affect the terms and conditions of your mortgage in any way. Computershare holds no beneficial interest or rights to the mortgage loan. This is merely a third party, custodial arrangement which means that your lender has used Computershare to review the mortgage and provide custodial certification to Canada Mortgage and Housing Corp (CMHC) for their government securities program. Computershare is the largest provider globally of many of the services they offer and the largest corporate trust service provider in Canada. They have successfully provided this custodial service to many Canadian bank and non-bank lenders for many years and they play a very important role in the Government of Canada’s NHA Mortgage-Backed Securities Program. Computershare has served as the exclusive Central Payor and Tr...
28 comments
Read more

How to Save Thousands On Your Mortgage Renewal

By
What could you do with an extra $15,000? If I were to offer you a cheque for $15,000 or even $2300 in exchange for a few documents would you turn in down because it was easier to simply renew your mortgage at your current lender? There are numerous published reports that confirm that most borrowers simply sign and return their bank's offer letter upon their mortgage renewal. More often than not, the rates they offer you are not the lowest available rates and they are definitely not as low as a Mortgage Broker could get you. If you take it upon yourself, you may very well be able to negotiate a better rate with them but how will you know if it is the best you can get? Here is an example… If your lender is offering you 4.24% for a 5 year fixed on a $250,000 mortgage* you would be paying roughly $15,600 more in interest than the standard 2.89% that most brokers are offering for the same term.    Now let’s say you negotiated with your lender and they were willing to drop you...
4 comments
Read more

Did you know that we can refinance up to 95% in order to remove someone from title?

By
Did you know that we can refinance up to 95% in order to remove someone from title?  Not only are we seeing more separations than ever, we are also seeing more co-signing required from family. This means that we needed a simple and useful too for removing one person from title, without being limited to the 80% refinance rule . Here is what you will need: A purchase agreement confirming the current value Current mortgage statement A legally binding agreement by the two parties detailing the buyout For more information on this or if you have any questions or concerns - please feel free to contact me. www.christinebuemann.ca 
13 comments
Read more