TD resisters ALL their new mortgages as a collateral charge. There is no way around this with TD. HSBC uses collateral charges frequently as well, but not on all their products. It can be tough to get a straight answer from them as well, and it's not common to be given incorrect information. It an also be difficult to find this info in the documents.Ram421 wrote: ↑ Is TD only offering a collateral mortgage. Can I ask for a standard mortgage . There is fees at renewal ( discharge + Legal Fee) , if we switch to another bank with collateral
Is it advisable to do 125% of home value ?
My case: first home buyer dealing with TD and HSBC for rates
My home value : 590,000
TD calculated registration : 738,000
TD is matching HSBC rate of 2.84 fixed.
Will 738,000 be shown as my loan in credit history ?
I wanted an easy mortgage so that I can pay what I was told. At time of renewal, if their a lower rate I should have the decision power to choose.
With a collateral charge mortgage, there are additional fees to switch at the end of your term. Legal of approximately $800, appraisal of around $300, in addition to the discharge fee from TD (around $300). Legal and appraisal are 3rd party fees. If you ask TD, they will often tell you that the only fee to switch is their discharge fee. This is the only fee from TD, however the other fees are very real, which they don't typically tell you about.
There are some lenders who will cover some or even all of these fees for you. if you want all the fees covered for you, the rate is usually around 0.05% higher. One way or another, you're paying the fees.
Should you register at 125%? The benefit of this is that it allows you to borrow additional money against your home without any additional fees. However, the fees you are saving are going to have to be paid anyway once you switch lenders. Either by adding the fees to your mortgage, or with a higher rate. Also, you still have to qualify for the additional funds. I once had a client who had registered their mortgage with TD for 125% of the home value. They needed to borrow additional money mid term, however TD declined them for the financing. Since TD had locked up all their equity, they had no choice but to sell their home. Something that they did not want to do. Considering the above, I do not suggest registering your mortgage for 125% of the home value.
This this for a switch? Or a purchase? What is the amount of the mortgage you actually need? Home value is $590,000?
Mortgage Broker, Author
CityCan Financial Corp (lic. 10532)