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| 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
