Christine Buemann Mortgage Broker

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 qual...

What are collateral mortgages and what is the differentiates them from a regular mortgage? CBC’s Marketplace recently did a story on how TD only offers collateral mortgages and this has sparked a lot of conversation about the topic. The main difference is how they are registered. When you receive a conventional mortgage, it is registered on title for the actual amount of the mortgage . A collateral loan is registered for higher amount, usually for the purchase price amount. The advantage to having the higher amount registered is that you are able to access the funds easier should you choose to refinance before the term is up. You would have to qualify for the increase in funds, but you would generally avoid paying legal fees for the transaction. There are several disadvantages but the largest one is how many people feel “trapped”. Most lenders will not accept transfers in upon renewals from collateral loans so you are usually stuck with that lender until you are able to ref...

As I discussed in my previous blog posting, the interest rate is an important aspect of a mortgage, but is not the only factor to consider. There are other “features” within a mortgage that can be equally as important. Here are a few: ·          Payout penalty calculations: how the lender calculates what your penalty will be if you pay you pay out your mortgage out before the end of the term ·          Pre-payment privileges: how much principle you can pay down annually without a penalty ·          Portability: if you can “port” the mortgage to another home should you choose to move ·          Assume-ability : if someone can “assume” the terms and balance of your mortgage ·          Blend and refinance-able : if they will allow you to blend the rate of your mortgage with t...