Collateral Mortgage...How much to Charge?
Hi Guys,
I've been reading quite a bit...and like most others in Canada, I had no idea the difference prior to my latest mortgage.
Anyways, I am going with TD...and part of my application is stating how much I collateral I want to charge.
I can charge up to 125% as we all know...but other than purely refinancing (Which I would never do; If i really needed more money, I can pull in some from elsewhere), is there any benefit to charge so much?
If I only charge the principle mortgage amount, if i understand it I still have the remainder in equity in which i could possibly go to another lender to get a HELOC or something correct?
I just feel the pros of charging the max amount don't really outweigh the cons...probably just equal...am i wrong?
I've been reading quite a bit...and like most others in Canada, I had no idea the difference prior to my latest mortgage.
Anyways, I am going with TD...and part of my application is stating how much I collateral I want to charge.
I can charge up to 125% as we all know...but other than purely refinancing (Which I would never do; If i really needed more money, I can pull in some from elsewhere), is there any benefit to charge so much?
If I only charge the principle mortgage amount, if i understand it I still have the remainder in equity in which i could possibly go to another lender to get a HELOC or something correct?
I just feel the pros of charging the max amount don't really outweigh the cons...probably just equal...am i wrong?