Globe and Mail Real Estate Reporter STEVE LADURANTAYE added depth and perspective to the TD Bank announced switch to collateral-charge mortgages, when he wrote "TD overhauls mortgage program as housing market slows ."

With residential mortgages registered as collateral charges, TD would have the upper hand on mortgage renewal at the end of the term since moving to another lender would mean paying off the mortgage and essentially starting again. This type of mortgage would not fall within typical within mortgage transfer and portability programs. And this is just part of the concern for consumers...

Ladurantaye reports that mortgage brokers also see TD’s move in a negative light: “The move has sparked anger among the country’s independent mortgage brokers, who see the change as a direct shot at an industry that has been gaining market share from the big banks by competing fiercely on mortgage rates.”

Reverse mortgage borrowers face many of these issues since they are usually financially “hand-cuffed” to their lender, so the more you understand the implications of this situation for traditional mortgages, the better prepared you’ll be to understand what you’re getting into when you sign on the dotted for a reverse mortgage.

Recommendation: This October 11/12, 2010 Globe and Mail article is well worth reading, comments and all: “TD overhauls mortgage program as housing market slows” — www.theglobeandmail.com/globe-investor/personal-finance/mortgages/td-overhauls-mortgage-program-as-housing-market-slows/article1752474/
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