Monday, September 30, 2013

Collateral Mortgages

Td Collateral Charge /Collateral Mortgage A collateral mortgage is a security agreement registered against a borrower’s property that allows them to secure the initial loan and possibly future loans.

  • With a collateral charge mortgage, TD mortgage customers can switch from a mortgage loan to a home equity line of credit (HELOC) in the future without incurring any new registration fees.
  • Where they choose to register the collateral charge for a higher amount than their current loan agreement (to a maximum of 125% of the current property value), they may be able to reuse the existing collateral charge for future borrowings and avoid incurring additional costs of registering a new charge on the property. 

From Td Economics
  • This week TD Economics released our latest Quarterly Economic Forecast for Canada (attached) which outlines how Canadian households continue to drive growth, while exports and business investment are stuck in the backseat.
  • A rebound in July retail sales confirmed the resiliency of the Canadian consumer. The retail data rounds out our expectation for July GDP, which is expected to recover after a decline in June.
  • On the other hand, the CFIB Business Barometer for August showed that the mood among small busi­nesses remains quite flat. Stronger business investment is required to help kick start Canada’s economy, but businesses need to become more confident about the future before that takes hold

Romy Alegria
Manager, Residential Mortgages
Line of Credits, Refinances
Toronto Core
C. 416.278.2540

P. 416.614.5446

Having a collateral mortgage permits you to use part as a credit line in addition to fixed financing.  This is good but in a declining value condo market a few percentage points, advance to value, could result in your spending your equity.

Be ever mindful of market conditions

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