Www Mortgagebankukmortgage Tag Storage Mortgage Bank Mortgage 【新闻】什么是collateral mortgages？ - 华枫论坛

a collateral mortgage is normally registered for floating or revolving debt such as a secured line of credit. It allows for the balance to float up or down.
TD will register a collateral charge for 125% of the loan amount… this will allow the client to come back at a later date and apply to increase their mortgage if needed….
in theory, it sounds great…no legal fees required in the future if you need to refinance… and easy approval…

But, a COLLATERAL MORTGAGE is NOT portable…meaning you cannot transfer to another institution…you will lose some leverage to negotiate the rate when your mortgage matures…
and if you wanted to increase your mortgage in the future, you would need to reapply for approval…let’s suppose you don’t qualify in the future..not because your situation changed but because the Bank’s lending policy changes…this happens regularly….you would now have to seek out an entirely new 1st mortgage as no other lender would register a 2nd mortgage in behind a collateral first mortgage (at least none that I am aware of)… that could mean penalties, definitely legal fees and other costs….
It’s obvious that a big reason TD would be doing this is to improve mortgage retention.. this makes it less appealing to leave TD because of the costs….