CTV News - Mortgage Minute February 12
Ottawa Mortgage Broker Frank Napolitano sits with CTV's Kurt Stoodley to discuss the difference between standard and collateral mortgages.
Click here for the full video from CTV News.
This week, on CTV's Mortgage Minute, Frank and Kurt discuss the difference between a standard and a collateral mortgage.
The main factor that sets collateral mortgages apart from standard is that a collateral mortgage can be registered for up to 100-125% (depending on the lender) of your home's value at closing, rather than only taking the amount needed. This allows for easier access to equity at a later date to consolidate debt, renovate, or purchase an investment property without having to consult a lawyer and pay legal fees.
The drawback to a collateral mortgage is that it is not transferable to another financial institution at maturity, which takes away bargaining power for a lower rate. Mortgage rates are still at record lows for the time being, but it is difficult to predict where they are headed, so many home owners may want to keep their options open, rather than being locked into one lender for the duration of their mortgage.
For more information about collateral mortgages, contact an Ottawa Mortgage Broker.