Beware of the registration type of your future mortgage.
I received this Toronto Star article from our great mortgage specialist, Gemma Riley-Laurin, who wrote the intro. The link to the complete article is at the end of Gemma’s piece. Robert.
“This is a great article explaining why a collateral mortgage may not be in your best interest, long term. TD, Scotia, ING, National Bank and RBC offer “collateral mortgages”. “Collateral Charge” is a type of registration. Most lenders will register a Home Equity Line of Credit or HELOC as a collateral as it can be re-drawn in the future.
A “collateral” registration for a mortgage means that you cannot have the mortgage “assigned” or “transferred” to another lender at maturity. You as a consumer would have to go to the cost of legal fees to bring your mortgage elsewhere. The option to register as a “collateral” reduces your overall competitive advantage in the future.
Some lenders “ING and TDCT) have taken the position that ALL of their mortgage be registered as “collateral” mortgages. This should be explained at the time of application, but we believe it is not. Most consumers do not cover this topic. “