Tuesday, June 17, 2014

Summer Sizzle Update - Toronto Mortgage Specials

June Sunrise in Toronto
Mortgage Best rate: 2.7% 4y fixed.  Variable 2.45%

Td Offers: $500 to offset fees associated with switching or refinancing and/or to rebate the In-house registration (IHR) fee or solicitor/notary fee (SOL) up to $500 for any new HELOC with an specific drawdown.

Td collateral mortgage: a refresher
The Collateral Charge is the security that the bank has in exchange for lending you the money set out in the Mortgage loan Agreement (MLA).  It is registered against the real estate you are either buying or refinancing.   You may have decided to have your Collateral Charge registered for more than the amount of money you are actually borrowing at this time.   You’ll notice that the interest rate in the Mortgage Loan Agreement is different from the interest rate on the Collateral Charge. The MLA sets out the specific terms and conditions of your loan. The Collateral Charge secures your loan and is registered at TD Prime Rate + 10%. This is the maximum rate of interest for which TD Canada Trust is secured. As you’ll see, this rate can give you greater flexibility and cost savings in the future.

Having a Mortgage Loan Agreement and a Collateral Charge can be useful if :
·         you ever want to change your loan if you wanted to switch from a mortgage loan to a home equity line of credit in the future, you could reuse the existing Collateral Charge as security for the new line of credit without incurring any new registration fees.
·         you have registered the Collateral Charge for a higher amount than your current loan agreement, then if you want to borrow a higher amount in the future, you may be able to reuse the existing Collateral Charge, subject to credit approval.
·         You could also save money at that time by not incurring the cost of registration fees for a new collateral charge on the property.

The Bank's All-Purpose Collateral Land Mortgage may be used to secure all present and future indebtedness and liability of the customer (the "Mortgagor") to the Bank. Such indebtedness and liability may be evidenced by loan agreements, promissory notes, Visa Cardholder Agreements, overdrafts, guarantees etc. The Bank's regular forms contain the clauses necessary to safeguard the Bank in the operation of an account after the Mortgage has been taken.

From Td Economics:
• Both the Bank of Canada and OECD highlighted stretched home prices and elevated household debt as a key vulnerability to the Canadian economy in two separate reports.
• Housing data released this week pointed to a moderation in housing activity. The Teranet Home Price In­dex showed a deceleration in annual home price growth to 5.1% y/y in May, from 5.5% in the prior month. meanwhile, on a trend basis, housing starts have averaged 184,000 units over the last year, a pace that is consistent with underlying economic fundamentals.
• The Wynne government took a majority in Ontario’s election this week, bringing political stability to the province. Even with this victory out of the way, the Government still has some major challenges ahead. Today’s manufacturing data were yet another reminder Ontario is still facing international competitive is­sues.



Romy Alegria
Manager, Mobile Mortgage Specialist
Toronto,
T:416 278 2540
F:1-866-222-5708

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