Collateral vs Standard Charge Mortgages- CTV
Many consumers are not made aware of, or are familiar with, the differences between the two mortgage charges.
Many consumers are not made aware of, or are familiar with, the differences between the two mortgage charges.
Some banking institutions only register collateral mortgages. If you are in a Home Equity Line of Credit (HELOC) product, you are in a collateral mortgage. One of the benefits of the collateral mortgage is the ability to borrow additional funds, if available, without having to incur legal fees. One of the restrictions of the collateral mortgage product is the requirement to use a legal service, and therefore the costs associated with this, in order to move your mortgage to a different lender.
When working with either a bank or a Mortgage Broker it is important to ask the right questions and understand the future implications of each mortgage product.
For information on standard and collateral charges, click here.