Collateral Mortgages Beware ! - CBC Marketplace
Make sure your MTG is standard & NOT collateral !
We all know about fixed rate, variable rate, closed , open mortgage etc..but very few know about Collateral mortgages.
http://www.youtube.com/watch?v=169T3_7F_3o
Published on Feb 6, 2013
CBC marketplace did a show on banking fees & collateral mortgages.
There are 2 types of mortgage registrations in Canada: standard charge and collateral charge.
TD & ING register all their mortgages as collateral charge where as other banks such as RBC, Scotia and National Bank register some as collateral charge.
This is good for the borrower if they intend to increase their mortgage amount in the future however moving the mortgage at renewal would involve legal and appraisal fees due to the type of mortgage registration.