Collateral Mortgages

November 28, 2011

Mortgage Monday

As I began writing this post about collateral mortgages, I started reading through other articles on the subject (and there are quite a few of them from the past year since TD Bank moved their mortgages from conventional to collateral mortgages).  I found a fantastic article on moneyville.ca that really said it better than I ever could.  Instead of trying to put together a post myself, I’ll instead simply point you to read the moneyville.ca article: “Beware the pitfalls of collateral mortgages.”

When you apply for a mortgage, you usually just ask about the term, amount, interest rate and monthly payment. Not many people understand the difference between a conventional mortgage and a collateral mortgage. Yet many banks are now asking borrowers to sign collateral mortgages — and it could result in them being tied to this bank, for life.  Continue reading…

Once you’ve read the article, come and back here and post in the comments: Now that you know about collateral mortgages, would you ever get into one?

About Tim

Tim is a mortgage agent in Barrie who specializes in helping first-time home buyers. He works with a variety of lenders and can help customize a mortgage with the best rates & options that fit the needs of each customer.

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