Personal Finance

HELOC Question

  • Last Updated:
  • Jul 24th, 2019 8:57 am
Tags:
Deal Addict
User avatar
Dec 21, 2009
1420 posts
157 upvotes
Niagara Falls

HELOC Question

Hey all,

We have a collateral mortgage with TD. Up for renewal in January.

Are we able to shop around/secure a HELOC with another lender? Or are we stuck with only being able to seek a HELOC with TD because our mortgage with them is a collateral one?

A TD advisor/rep over the phone stated we are free to shop around, but everything I am reading seems to say otherwise.

Can anyone confirm?

Thanks :)
4 replies
Deal Addict
User avatar
Sep 19, 2013
2779 posts
1134 upvotes
Winnipeg
You cannot renew your 1st position mortgage with other banks, you're stuck with TD. If you need to renew, you need to pay legal fees, etc.

However, for HELOC is a 2nd position loan. You can get it for any FI. Since FIs have rules on which other FIs they can go behind, your search is only limited to FIs that will go behind TD. Hope that answers the question.
In the beginning the Universe was created. This has made a lot of people very angry and been widely regarded as a bad move. -- Douglas Adams
Deal Fanatic
Dec 12, 2009
6145 posts
3614 upvotes
Toronto
Mr Bean wrote: However, for HELOC is a 2nd position loan. You can get it for any FI. Since FIs have rules on which other FIs they can go behind, your search is only limited to FIs that will go behind TD.
IOW,
It may be worth asking before applying. State you have a collateral mortgage with TD and ask if this is something that the other bank is OK with before applying. The person doing the paperwork won't want to do it if they know it will not likely go through.
Banned
Sep 19, 2012
1253 posts
1867 upvotes
Calgary
Nurse2B wrote: We have a collateral mortgage with TD. Up for renewal in January.

Are we able to shop around/secure a HELOC with another lender? Or are we stuck with only being able to seek a HELOC with TD because our mortgage with them is a collateral one?

A TD advisor/rep over the phone stated we are free to shop around, but everything I am reading seems to say otherwise.
Switch from TD to whomever you like. Get a HELOC separately from Motusbank. You’ll pay something like p+0.05% on the Motusbank HELOC.

Getting a HELOC behind TD will be exceedingly difficult because TD has probably secured their collateral charge with the full value of your house (when you bought). Unless you’ve had extreme price appreciation, there is not enough likely to be enough unused security for another HELOC.

Nikola Alaica, CPA, CA | Ahlaker Financial | Tax, Accounting, Mortgages
Nikola Alaica, CPA, CA | Tax, Accounting, Mortgages
Deal Addict
User avatar
Dec 21, 2009
1420 posts
157 upvotes
Niagara Falls
ahlaker wrote: Switch from TD to whomever you like. Get a HELOC separately from Motusbank. You’ll pay something like p+0.05% on the Motusbank HELOC.

Getting a HELOC behind TD will be exceedingly difficult because TD has probably secured their collateral charge with the full value of your house (when you bought). Unless you’ve had extreme price appreciation, there is not enough likely to be enough unused security for another HELOC.

Nikola Alaica, CPA, CA | Ahlaker Financial | Tax, Accounting, Mortgages
If they secured it for the full value there’d be approximately $95k in unused security now.

Top

Thread Information

There is currently 1 user viewing this thread. (0 members and 1 guest)