Collateral charge debate heats up

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The lack of transparency surrounding collateral charge mortgages at one big bank has sparked furious debate among mortgage brokers.

CBC’s Marketplace went undercover last week to TD Bank to see how transparent it was about collateral mortgages and the fine print associated with them; and, according to the segment, TD earned failing grades. The segment has, unsurprisingly, incited interest among mortgage brokers.

Many are calling for lenders to better explain the potential pitfalls of signing up for a collateral charge mortgage – something TD was charged with failing to do during the segment.

“An even bigger issue is a collateral mortgage combines the unsecured debt, debt that is unrelated to the mortgage, with the mortgage,” Lior, a MortgageBrokerNews.ca reader wrote. “If a mortgagor defaults on their unsecured debt, for whatever reason, the bank can exercise power of sale on the home.”

And while many brokers have pointed out the potential positives of signing up for a collateral charge, the lack of disclosure is still an issue.

“The story of collateral mortgages should be summed up as a potential advantage to consumers combined with a definitive advantage to the lender; nothing wrong with collateral mortgages if they are presented with honesty, transparency and full disclosure,” Ron Butler of Butler Mortgage wrote on MortgageBrokerNews.ca.  “There is a consumer advantage to doing additional property lending without legal fees and there is a profound disadvantage to the consumer by reducing the ease of transferring a mortgage at maturity. In TD's case they do not offer any product other than a collateral mortgage so it is all the more important the client be properly informed and warned.”
 
  • John Greenlee on 2015-03-05 12:01:10 PM

    Our office doesn't deal with TD very much.

    However; in fairness to TD, the last deal we did with them in the fall the commitment did have a clause that the client had to fill in regarding if they wanted the collateral mortgage charge or not.

    We were able to give the client the information on what this meant and they chose not to take the collateral charge.

    I am not sure if anything has changed since the fall in regards to TD's commitments. If it hasn't, it would be inaccurate to say that TD only allows a collateral charge.

    Either way there are advantages and disadvantages. I believe the collateral charge simply opens up another topic of education for the client.

  • Chris Murphy on 2015-03-05 12:06:38 PM

    Sorry John to advise you that little checkbox refers to the amount the lender can register; either for the mortgage amount or 125%.
    I checked that myself last year and was told by TD it's always a collateral mortgage.

  • Allan Bowerman on 2015-03-05 12:23:50 PM

    TD and Nat Bank only offer collateral charge mortgages. It has been this way for some time.

  • John Greenlee on 2015-03-05 12:26:40 PM

    I stand corrected. I guess I should have taken another look at the file before I commented.

  • John Greenlee on 2015-03-05 12:26:51 PM

    I stand corrected. I guess I should have taken another look at the file before I commented.

  • Angie - Td Canada Trust on 2015-03-05 12:40:15 PM

    This is usual this time of year as Brokers work to sway public opinion away from the Banks as we head into the busiest time of the year. Interesting that TD is the target this time considering every major lender do collateral mortgages. Brokers don't like banks doing collateral mortgage as it keeps them from taking business away.

  • Waldek on 2015-03-05 12:59:55 PM

    TD is the target b/c TD doesn't give any choice to the borrower in regards of the collateral mortgages. It's either a collateral or none at all. The problem is that the consequences of this kind of product are not clearly explained to the clients, even worse - clients are told that there is not much difference btw collateral and standard type of mortgage. Brokers could easily be sued if they provided this kind of misleading info, however banks get away with this on a daily basis. The only "defence" I can think of, from the bank officer's point of view, is that a lot of the times, from my experience, the bank officer him/herself has no clue about the difference btw collateral and standard type of mortgage. But that is another issue - not sure if this lack of training on this subject is intentional or not.

  • George Christopoulos on 2015-03-05 1:39:25 PM

    Angie every schedule A bank has a collateral charge for their HELOCS.
    Only TD and Nat Bank use it for all their mortgages.
    This is nothing more than a retention ploy. Make it as difficult as possible to leave the bank.
    Consumer perception is "their" bank will take care of them and look after their best interest. That is far from the truth.
    FYI - I'm an ex banker also

  • Amina on 2015-03-05 1:41:37 PM

    I always advise my clients about the potential of a collateral mortgage and explain both the pros and cons so that in the end the decision is theirs. I then follow up with a letter to the lawyer and the lender so that the charge is not registered as a collateral if that is what the clients wants. Has worked with National Bank but not with TD, which is frustrating as it still ends up being registered as a collateral charge. I think it's time for change to come!

  • Dan on 2015-03-05 2:02:19 PM

    Scotia is doing the same thing

  • Waldek on 2015-03-05 2:18:49 PM

    at least with Scotia clients have an option of NOT having a collateral charge registered.

  • Omer Quenneville on 2015-03-05 2:33:24 PM

    Scotia does give the option only if you ask. If you don't ask and why would you ask if you don't know, they automatically register as a collateral charge. I don't know why that are allowed to call it a mortgage in the first place. A mortgage is not a loan and shouldn't be allowed to be treated as one and a collateral charge should not be allowed to be insured by CMHC. Why do TD do it this way? Because it is a win win for them all the way.

  • Omer Quenneville on 2015-03-05 2:33:27 PM

    Scotia does give the option only if you ask. If you don't ask and why would you ask if you don't know, they automatically register as a collateral charge. I don't know why that are allowed to call it a mortgage in the first place. A mortgage is not a loan and shouldn't be allowed to be treated as one and a collateral charge should not be allowed to be insured by CMHC. Why do TD do it this way? Because it is a win win for them all the way.

  • Ron Butler on 2015-03-05 3:10:31 PM

    Look, I don't care either way: I am clear in my point as long as the collateral charge is fully disclosed in plain language the consumer can make up their own mind whether they want it or not. But if the consumer is NEVER told the that the collateral charge will degrade their ability to find a better deal on their mortgage at maturity that is a very bad thing and the lender should be ashamed of themselves.

    In the case of banks that ONLY offer collateral charges the fact the mortgage will be more difficult or more expensive to move on maturity that warning should be in huge bold print on the front of their disclosure documents.

  • Jivan Sanghera on 2015-03-05 3:15:35 PM

    Well Said Ron Butler!

  • Sudbury Tim on 2015-03-05 3:32:30 PM

    Angie, sounds like you are a loyal 'company person', and you have fallen for your banks sales pitch. The root of this policy lies in TD retaining their clients against their will. At maturity date at other banks, and mtg lenders, clients are free to shop around to find their best mtg deal, and can then transfer the mtg to that lender, usually for free, and no legal expenses. TD has taken this ability away, and going a step further, they no longer have to provide competitive terms or rates, because they know clients will have to hire a lawyer to switch to a new bank. This policy was likely dreamed up by a 'non-sales person' who cannot retain clients using good service and competitive means as their tools.
    Instead, trickery, and taking advantage of common folk who don't know the subtle differences between one mtg and another.
    We have put many many clients into TD mortgages, but that ended about 3 yrs ago when this new policy came out.
    Personally, I like the TD policy, as it gives me, as a broker an advantage, by explaining this to potential TD clients. They are usually quick to embrace brokers in action.

  • Ron Butler on 2015-03-05 3:52:39 PM

    TDCT, depending on which quarter it is; will be the number one or two mortgage originator in the Canadian mortgage space in terms of TOTAL (not broker only) mortgage origination so they are clearly doing a heck a job and they retain a ton of long-term clients. Give credit where credit is due BUT I stand by my statement; the public deserves full disclosure, just disclose it is a non-transferable mortgage instrument. At the end of your term the mortgage will have to be fully discharged if you want to switch to a new lender, the mortgage cannot simply be transferred.

    The federal government stated they wanted to make these matters more transparent to the public along with penalty calculations: so let's get going on that Ottawa!! Make it happen.

  • George on 2015-03-05 4:36:57 PM

    Why is everyone making this such a big issue. A collateral charge = $650. In other words, having a collateral charge results in a cost of about $650 to leave at maturity. That's it. Nothing else. Nothing more. One Omer's comments that Scotia does collateral unless you tell them not to, this is not true at all. I have been dealing with scotia for 10 years and transferred to another lender at maturity many times. Your facts are wrong Omer

  • Ron Butler on 2015-03-05 4:40:06 PM

    George how is that fair to consumers: have a collateral charge pay $750.00 (good luck finding $650.00) to transfer, have a regular charge and pay ZERO. Don't consumers have the right to know those costs in advance?

  • Waldek on 2015-03-05 4:45:25 PM

    another issue that nobody has so far touched on - what happens if the borrower needs to take out some equity and don't qualify for that with TD (or any other bank that slapped the collateral charge on)?? Good luck getting them a 2nd mtg if the 1st is registered at 100%. More and and more private lenders are very cautious about getting behind such 1st Charge. TD (and others with collateral Charges) have the customer "by the balls"

  • George on 2015-03-05 4:51:46 PM

    Ron
    Where did I say not to disclose to the client? The point I am making is that the evil of a collateral charge is a mere $750 to move the mortgage elsewhere.

  • Ron Butler on 2015-03-05 4:55:39 PM

    Well Geroge, if the client knows about the $750.00 and was happy to pay then you are dead right.

  • Angie on 2015-03-05 5:00:11 PM

    The only way you can't finance in behind as a second mortgage is if the Collateral Charge was registered @ 125% of the property value at the time the application was taken. If the client choose to registered the charge only at face value of their mortgage then a 2nd mortgage company can go in behind with a separate charge/registration. If the consumer chooses to register the charge @ 125% for future reuse then that is what they choose. Peoples situation can change such as employment, credit etc. and that could be why they don't qualify to reuse the charge and no bank can be held accountable for that.
    To bad we don't have some notaries or solicitor commenting I would love to hear their opinion.

  • George on 2015-03-05 5:01:46 PM

    Correct. Also, when the client understands the benefits of the collateral (ability to pull more money out without new costs), they then make their own decision if the product works for them. As an aside, I have an affiliation with legal folks who do this for $650 all in and often times I pick up this cost for the client a renewal anyways. You see, a win-win -win across the board Ron.

  • Ron Butler on 2015-03-05 5:10:35 PM

    George, I pay legal fees to transfer mortgages everyday but what I have observed from talking to about a jillion clients is that they NEVER know that that the mortgage was a collateral charge.

  • George on 2015-03-05 5:14:58 PM

    Shame on those brokers who put those jillion clients of yours into a collateral without full disclosure. Whenever I get a client like this (who has a collateral mortgage and was not notified in advance), I ask to see their Disclosure statement and see if in fact the broker did disclose the collateral charge and the ramifications of such. If they did not disclose this in writing, I advise the client to call the broker to complain and demand $$$$ for the client's cost and if the broker refuses, I tell the client to call FSCO. Amazing how fast the broker pays up.

  • Ron Butler on 2015-03-05 5:20:49 PM

    George, you were doing okay till that post, you just jumped the shark.

  • George on 2015-03-05 5:26:03 PM

    "jumped the shark"? Not sure what you mean?

  • Waldek on 2015-03-05 5:33:22 PM

    Angie - tell me one thing honestly. How many times do you personally tell your clients this; "Mr. so-and-so. We can register your mtg at 100% or 125% of the value of your home,however please keep in mind that if you need to take out some equity from your home AND you don't qualify with us, you will have a very hard time getting a 2nd mortgage from another lender"

    Now... if you are this honest with your clients, you are one in a million ;-)

  • Tim on 2015-03-05 5:34:23 PM

    Angie, most lenders won't put a second behind a collateral mortgage - the expectation is that the first will be paid down over time, whereas in the case of a collateral mortgage, that isn't necessarily the case (or can be, but then wiped-out by offsets of other accounts, etc.) - they represent an inherently higher risk at any registered mortgage amount.

    Collateral Charges can be beneficial, but not in most circumstances: no benefit whatsoever in the case of high ratio mortgages, and if the Borrower wants a HELOC/2nd, they are totally at the mercy of the first lender (to get a decent rate, if they get approved at all).

    While the cost to "Transfer" is not exorbitant, why would any informed consumer choose to pay extra for something that gives them no benefit?

    The problem is not Collateral Charges per se, but rather the Banks' (particularly TD) lack of disclosure surrounding them.

    Frankly, the bigger 'crime' is the lack of disclosure surrounding prepayment penalties on fixed rate mortgages ...

  • Angie on 2015-03-05 5:37:02 PM

    When I explain I do say; to reuse the charge a new application does need to be taken and they will need to requalify.

  • George on 2015-03-05 5:41:16 PM

    A bigger crime is when brokers sell some of these monolines and do not disclose the tricky clauses (porting only on same day buy/sell; no bridge financing in the future so stuck breaking mortgage; not disclosing some of the crazy penalties; not disclosing prepayment features fully). The issue is that most agents themselves do not understand the ramifications of some of these clauses so how does one expect them to disclose to the client?

  • George on 2015-03-05 5:41:34 PM

    A bigger crime is when brokers sell some of these monolines and do not disclose the tricky clauses (porting only on same day buy/sell; no bridge financing in the future so stuck breaking mortgage; not disclosing some of the crazy penalties; not disclosing prepayment features fully). The issue is that most agents themselves do not understand the ramifications of some of these clauses so how does one expect them to disclose to the client?

  • Angie on 2015-03-05 5:44:50 PM

    Conventional or Collateral this is the question?

    Ford or Dodge this is the question?

    Neither is for everyone but some like.

  • Bill on 2015-03-05 5:51:14 PM

    Bank Rep: Ford or dodge
    Mortgage Broker: Audi or BMW
    Hmmmmm............

  • Angie on 2015-03-05 5:54:07 PM

    Actually I drive a Nissan 370Z Roadster

  • Steve Kornbluth on 2015-03-06 12:52:55 AM

    I thought I'd jump in on this debate. I primarily only do second mortgages. I think the bigger issue is more about a $750 legal fee if they want to switch at maturity. Really, collateral charges limits the borrowers ability to get additional financing with any other institution if they need it. If they do not qualify at their existing bank, then they are stuck. I've lost many deals to collateral charges because we can't go behind them. Brokers send me private deals, and tell me scotia/td/RBC will provide us a letter that they will not advance anymore funds. However, that's only one of the issues, the other issue is that collateral charges will secure debts from the bank, that the borrower thought was unsecured, ie, credit cards, car loans, lines of credit. I've yet to come across a borrower who understands this, and the consequences. This means, the borrower can default on their credit cards, but keep the mortgage up to date, but the bank could still take their home because they have a bad credit card debt. This is up to the each bank on how far they want to take things, but I've seen it happen.

    The other issue is it limits the borrower on refinancing too. Let's assume the borrower we have a borrower wanting to refi to 80% LTV, to pull 50k cash out for renovations. But they have an unsecured LOC with their existing bank for 30k, and a car loan for 20k with the same bank. Guess what, the payout the lawyer receives may include the amounts for the unsecured debts too. Now, the borrower will require more than 80% LTV to payout the debts, and get enough money to do their reno. We all know that we can't get best rate financing over 80% LTV, so the borrower is handcuffed to the lender.

    I totally agree with Ron Butler, that disclosure is paramount when placing borrowers with lenders who register collateral charges.

    To me, this seems like a huge opportunity to get a large chunk of business away from the banks. This is good news for the broker community. Imagine this... Banks have about 70% Market share, and most of them are implementing a tactic that is not being properly disclosed to consumers? For the majority, there is no benefit to saving $750 on legal fees to get some extra money. I don't know about you guys, but when I've had to decline a client for secondary financing because of collateral charges, they say to me, oh ya, I forgot, the bank rep told me this might happen... Said no client ever.

  • Broker on 2015-03-06 10:54:00 AM

    National Bank just introduce a $6.00 monthly charge to their Allinone product. This is the only reason they get any business at all and now they have just screwed this up. Good bye Nat Bank. I mention this is as they are one of the lenders whose products are collateral.

  • Leigh on 2015-03-06 12:26:15 PM

    How did we go from a disclosure debate to an earnings competition?? THIS appears to be the single largest issue in the latter half of these comments - us vs them. Really?

    To Ron Butler - your comments are always even-handed & well placed. A tip of the hat to you.

    To Angie - many brokers (myself included) are former bankers. Also, while legally speaking, a 2nd mortgage would take priority over funds advanced on a collateral charge AFTER 2nd mortgage registration, it gets cumbersome and legally demanding. Consequently, 2nd mortgage lenders will be hesitant to get involved behind a collateral charge regardless of registration limit. All this means is more expense to the consumer in circumstances where TD will not help.

    TD - as an example of the few lenders who offer only collateral registration - has products that a broker needs, regardless of future consideration. TD has favourable considerations for multiple property owners, acreage acceptance, etc...that any mortgage originator needs to rely on.

    The debate is not about whether it's a right or wrong tool - we all agree that while it has its advantages, it does have its disadvantages as well - the debate is about appropriate disclosure. Are borrowers told clearly they can NOT transfer on maturity? Can borrowers guarantee that TD WILL help them when their circumstances change and they need to borrow more in the future?

    While a $650 legal fee to switch out later may be tolerable for some consumers (and brokers), that does not solve every transfer problem either.

    TD mortgages are a tool that any mortgage broker needs. They just need to be provided with all eyes open. The Marketplace expose is useful, and is making consumers aware. That's all that needs to be done.

    Pointing fingers and d#$k-measuring starts to defeat the whole purpose of what we're doing, which is improving our respective clients' financial positions.

  • George Christopoulos on 2015-03-06 12:29:14 PM

    Angie the danger with this stuff is people dont know how to explain it to clients.
    Branch people are very inexperienced and they are being feed KoolAid by their regional sales people.
    Branches and mortgage rep's who think they are brokers simply say sign here and the client has just signed a complex document but has no idea what they just signed.
    At the end of the day the client gets screwed over.

  • Adrian on 2015-03-06 12:50:30 PM

    Anyone here who is defending a 100% stance on collateral "charges" (they are not in fact a mortgage) or making comparisons trying to limit the differences between a collateral charge and a mortgage charge simply does not understand the product. They are VERY different financial vehicles with only one similarity, they fund a secured purchase.

    Collateral charges as an OPTION have their place and can be very useful to savvy borrowers who fully understand the product. However, to be forced into this type of borrowing regardless of the amount registered with little or no disclosure is simply wrong. I have close relationships with a couple of my solicitors and I can't count how many times i hear stories of the solicitor being the first person to disclose a collateral charge to a borrower.

    Lesson here is use a lender who provides both options. Consult with your client, disclose the details of both options, advise accordingly and allow the client to make an informed decision.

    As mortgage professionals it is our duty to act in their best interest and not that of any one given lending institution.

    BTW, George, if you are in fact a financial professional your comments re monolines, "a mere $750" and calling FSCO are pretty shocking there bud. Don't be too quick to drink the Kool Ade until you know what's in the glass.

  • John on 2015-03-06 1:15:01 PM

    TD Has a very cozy relationship with a lot of the builders on the Ottawa area. I am sure many of the new home buyers are not aware of what they are signing.

  • Tranc34m3r on 2015-03-07 9:30:07 PM

    Formerly working for TD as a Mtg Specialist, i left the industry last year. Collateral Charge Mortgages can seem complicated at times and i can see how some may be educating the wrong information about it. Best person to speak to is the bank registering it and yes they should be clear about the fact that the Mtg is collateral even if they register the amount to match the loan, and not register up to 125% of the value of the home. The reality is that you CAN transfer the loan amount to another FI but that FI CANNOT transfer the collateral registered against it. Therefore a charge will incur to remove the charge. Most FI's will cover that fee as they hope to win your business and eventually move you towards a full service customer. In fact, most FI's have campaigns during the busy seasons where they offer a switch incentive to cover legal expenses. This has nothing to do with screwing you over or locking you in at higher rates. the feature will usually benefit a larger percentage of customers than those that like to jump from FI to FI all the time. Brokers know this and don't benefit from you remaining with your bank, so they post a lot of negative and some times misleading information on the product.

  • Adrian on 2015-03-08 11:54:23 AM

    Tranc34m3r Really? You are woefully ill informed. Covering legal cost? Nope. Not with a collateral charge. If so it's buried in an inflated rate on the back end. I assume you only worked for TD. You should understand all FI's guidelines before making statements such as that. It's simply not accurate.

  • Tranc34m3r on 2015-03-08 10:07:53 PM

    So Adrian i only worked for TD you are right, but i have close friends working with OFI's. specifically BMO, RBC and CIBC. 2 happen to be mortgage specialists as well. The other an FA working with mortgages. So i happen to know how they are handling these collateral charges. I don't know what i said that you think i am sooo wrong about. i'm telling now, we were offering $$$ to those transferring OFI mortgages to cover the expenses . they offered the same as well. This is not hard to understand. You are most likely a broker judging by your comments to my post. If you are not, then i'm hoping you work for a major. If not, please explain to me this "inflated rate on the back end" you bring up. I have a feeling i know specifically what you are referring to. Why don't you explain it.

  • Tim on 2015-03-08 10:37:01 PM

    Tranc34m3r, sure the Big Banks often run promos to cover legal costs, but you do understand that it really isn't the same thing as not having a legal fee to pay, right?

    Again, what benefit is a collateral charge to a high-ratio borrower? All it does is increase their cost of switching (which may be covered by another FI), and put the asset at higher risk (such as adding other liabilities to the mortgage loan in the event of default).

  • Tim on 2015-03-08 10:47:14 PM

    Must be an interesting disclosure discussion with the client: "unlike mortgages from other lenders, at the end of the term you will incur legal fees if you want to move your mortgage to any other lender. But don't worry, if you move to another chartered bank there's a decent chance they will cover the cost."

  • Adrian on 2015-03-09 12:58:02 AM

    As a successful 15 year veteran broker who has worked with them all, many hundreds of times, I can tell you that the only way an Fi will "cover" the cost to trans a collateral charge is when that cost is buried by inflating the rate above floor. At floor, no cake. FI's can "promote" all they want, the costs incurred are borne by the borrower and in fact usually more than covered when factoring in compound interest on an inflated rate. (Extra revenue via amortized compound interest to cover a cost is a back end gain) In addition I've seen many offers sold as "covering" verbally when it is in fact an offer to "capitalize" the cost, a difference that the borrower is often not aware of until they are at the lawyer's office and then it's usually buried in the closing cost equation (deducted from proceeds and shifted to closing cost balance sheet) at which point the borrower is a deer in the headlights and just capitulates.

    That said, branches at times use "brown" dollars to buy down rates or cover clients costs. These "funds" are accumulated by inflating the rate for some clients, banking those extra earnings as brown dollars, to use as an incentive for a more attractive client in the future. So, okay, at times a branch has discrepancy, but make no mistake, trans costs are always covered by someone other than the FI 100% of the time. One only needs to read the fine print in any mortgage commitment to understand this fact. I could go on but this is mortgage 101 and I'm probably boring some folks..

    Regardless, I'm not anti Collateral charge, it has it's uses but must be fully disclosed, only by those who fully understand it's intricacies and, it should never be the only option..

    Time for bed. Busy week ahead!

  • Tranc34m3r on 2015-03-09 10:42:57 AM

    Well Mr. Veteran if you refer back to my first post, i was clear in saying that the information must be disclosed to the customer. And yes, you bring up examples in some circumstances where a branch cannot pick up the transfer costs if they need to compete on floor. I cannot speak on behalf of the folks at the retail level, in which to be honest, i only found a few that i wanted to work with. But for me, i never sold on rates, i know they were important but it was the last thing i mentioned. If i got the sense that the customer is an FI jumper and only cares about the rate, i would not waste my time and direct them to the brokers. The TD product is really not good for those types i know that...

  • Tranc34m3r on 2015-03-09 10:43:13 AM

    Well Mr. Veteran if you refer back to my first post, i was clear in saying that the information must be disclosed to the customer. And yes, you bring up examples in some circumstances where a branch cannot pick up the transfer costs if they need to compete on floor. I cannot speak on behalf of the folks at the retail level, in which to be honest, i only found a few that i wanted to work with. But for me, i never sold on rates, i know they were important but it was the last thing i mentioned. If i got the sense that the customer is an FI jumper and only cares about the rate, i would not waste my time and direct them to the brokers. The TD product is really not good for those types i know that...

  • TD mortgage specialist on 2015-04-02 3:53:06 AM

    Adrian-mr veteran. I at TD bank I do not sell floor rates. I beat broker rates and product while holding the largest Brand in North America behind me not to mention our Customer Committment which is rated #1 amongst all banks. 2.10% variable is definitely not above floor.
    Oh and did I mention that TD is picking up all appraisal and legal fee costs on Mortgages until Sept 1 2015????? Best rate, best product, best price. Contact your local TD mortgage specialist to learn first hand what a Collateral mortgage is and how it can help you. Thank you!

  • TD mortgage specialist on 2015-04-02 3:53:30 AM

    Adrian-mr veteran. I at TD bank I do not sell floor rates. I beat broker rates and product while holding the largest Brand in North America behind me not to mention our Customer Committment which is rated #1 amongst all banks. 2.10% variable is definitely not above floor.
    Oh and did I mention that TD is picking up all appraisal and legal fee costs on Mortgages until Sept 1 2015????? Best rate, best product, best price. Contact your local TD mortgage specialist to learn first hand what a Collateral mortgage is and how it can help you. Thank you!

  • Ottawa Broker on 2015-04-02 7:22:55 AM

    LOL
    Another bank road rep that does not understand the full and true implications of a collateral charge mortgage. They must still be putting something in the water when they do these training sessions as these road reps buy into it hook line and sinker. Oh, and before you comment about my lack of knowledge, I was a Regional VP with TD Bank in one of the largest regions in Ontario, so I VERY clearly know what I am talking about.

  • Omer Quenneville on 2015-04-02 8:09:32 AM

    Ottawa Broker, don't blame the reps, they are trained to think it is the "next best thing". Just like the mortgage insurance that all banks sell, the reps feel they are doing a good thing selling that insurance. They are little soldiers pouring the kool aid with good intentions. We are the ones dropping the ball. As mortgage brokers, we are the ones dropping the ball. We should be doing a mass advertising campaign to inform the public. What a great marketing opportunity being missed.

  • Adrian on 2015-04-02 2:39:51 PM

    It's not worth responding...

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