TD bank overhauls mortgage program

TD bank overhauls mortgage program

TD bank is redesigning its mortgage program to make it easier for homeowners to tap into their equity and harder for them to switch to another lender when their mortgage renewal comes up.
 
The main difference of the overhaul is a switch to collateral-charge mortgages, which are similar to lines of credit. The bank is encouraging employees to approve customers at 125 per cent of a home’s actual value with certain conditions, so the homeowner can easily borrow more money if the property value increases.
 
Unlike traditional mortgages, collateral mortgages are difficult to transfer from one lender to another because they must be paid in full to be cancelled.
44 Comments
  • Clayton 2010-10-14 5:44:26 AM
    This will more reason to converse with your clients. This is denying the client the right to switch to a better mortgage without paying a penalty.
    This has been done already with some clients and was not properly explained to them at the time of registration.
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  • Douglas Dane 2010-10-14 5:45:45 AM
    Certainly this is good for borrower's in some respects but another obstacle to brokers. Is this shift also motivated by trying to move away from a reliance on brokers? We'll certainly be telling customers about the pros and cons of a collateral charge. If they are not happy with TD after their initial term, it is more difficult and costly to switch.
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  • Craig 2010-10-14 5:49:22 AM
    Just another push to try and remove the brokers from the picture. There sre so many better lending institutions to deal with. They hired a bunch of in house brokers and now this. I won't deal them.
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