TD Mortgages Go Collateral...Is What's Good for Them Good for You?
Posted by PJ Wade at 10/9/2010 10:41 AM 
Categories: Continuing Education and Presentations, Home Equity Management
Categories: Continuing Education and Presentations, Home Equity Management
TD Mortgages Become Collateral Charges...& Hand-Cuffs to Unsuspecting Borrowers
Presented as an opportunity for borrowers, TD’s switch from registering on title a document for a specific mortgage amount to registering a loan agreement that can represent up to 125% of the value of the property is not merely paper shuffling. This change will tie borrowers to this lender and make it difficult to access available equity if this lender’s criteria are not met. The initial mortgage loan might total 60% of the real estate’s value, but to take out a further 20% later may not be simple even though the blanket collateral charge is registered on title, making borrowing through a different bank or mortgage broker difficult if not completely impossible.
On October 8, Editors Melanie and Rob McLister announced on CanadianMortgageTrends.com that after October 18 “TD Mortgages To Become Collateral Charges ” while Mortgage Broker and Editor of CanadaMortgageNews.ca labelled this news as “Introducing the new TD mortgage…hand-cuffs included .” Well respected by the industry, comments on these blogs raise issues from the clientperspective, which is not always evident in product announcements frombanks and other lenders.
The pitfalls and potential that occur to knowledgeable readers (many of them mortgage brokers) of these widely-acclaimed blogs appear in the comment sections of those postings, so there is little need to rehash the pros and cons here. Just a reminder: The print and ebook versions of Reverse Mortgages: Best Friend, Worst Enemy...Your Choice! cover many of the concerns and questions that consumers should raise when dealing with any lender or considering any encumbrance of the equity in their property:
“My advise to anyone looking at a TD mortgage is to be careful…make sure you understand all the terms, conditions, the differences and the limitations…you be the judge… is this a good thing for the client or is it a good thing for the Bank?? Will other Banks follow? Some might say this is like putting handcuffs on the client… I tend to agree… “ said Steve Gaganis on his blog CanadaMortgageNews.ca
We repeat the caution here: Banks and other mortgage lenders are in business to make the most profit possible, with the minium amount of hassle, in the fastest possible time. They are not in business to look after you and your real estate—that’s your job: Home Equity Management. The issues covered in the book "Reverse Mortgages" and in the education program "Reverse Mortgages & Home Equity Management, In Context" help professionals understand how the long-term issues of reverse mortgages can be ignored or misinterpreted by consumers and by themselves since spending equity, instead of building equity is new to most professionals and advisors. Consumers and their advisors may be long overdue for similar care with traditional or forward mortgages.
Presented as an opportunity for borrowers, TD’s switch from registering on title a document for a specific mortgage amount to registering a loan agreement that can represent up to 125% of the value of the property is not merely paper shuffling. This change will tie borrowers to this lender and make it difficult to access available equity if this lender’s criteria are not met. The initial mortgage loan might total 60% of the real estate’s value, but to take out a further 20% later may not be simple even though the blanket collateral charge is registered on title, making borrowing through a different bank or mortgage broker difficult if not completely impossible.
On October 8, Editors Melanie and Rob McLister announced on CanadianMortgageTrends.com that after October 18 “TD Mortgages To Become Collateral Charges ” while Mortgage Broker and Editor of CanadaMortgageNews.ca labelled this news as “Introducing the new TD mortgage…hand-cuffs included .” Well respected by the industry, comments on these blogs raise issues from the clientperspective, which is not always evident in product announcements frombanks and other lenders.
The pitfalls and potential that occur to knowledgeable readers (many of them mortgage brokers) of these widely-acclaimed blogs appear in the comment sections of those postings, so there is little need to rehash the pros and cons here. Just a reminder: The print and ebook versions of Reverse Mortgages: Best Friend, Worst Enemy...Your Choice! cover many of the concerns and questions that consumers should raise when dealing with any lender or considering any encumbrance of the equity in their property:
“My advise to anyone looking at a TD mortgage is to be careful…make sure you understand all the terms, conditions, the differences and the limitations…you be the judge… is this a good thing for the client or is it a good thing for the Bank?? Will other Banks follow? Some might say this is like putting handcuffs on the client… I tend to agree… “ said Steve Gaganis on his blog CanadaMortgageNews.ca
We repeat the caution here: Banks and other mortgage lenders are in business to make the most profit possible, with the minium amount of hassle, in the fastest possible time. They are not in business to look after you and your real estate—that’s your job: Home Equity Management. The issues covered in the book "Reverse Mortgages" and in the education program "Reverse Mortgages & Home Equity Management, In Context" help professionals understand how the long-term issues of reverse mortgages can be ignored or misinterpreted by consumers and by themselves since spending equity, instead of building equity is new to most professionals and advisors. Consumers and their advisors may be long overdue for similar care with traditional or forward mortgages.
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