No, the hand-cuffs are still on if you took a TD Mortgage recently.. yes, they are still being registered as a collateral charge and not the normal, conventional charge…
But I heard from a good source that TD is working on changing their policies to allow for the transfer-in of collateral mortgages. That would mean that TD would accept collateral mortgages from other financial institutions should new clients wants to bring their mortgage to TD.
But how does this help a TD client that is up for negotiation with their mortgage when TD knows they cannot transfer that mortgage out without having to pay new legal fees to move that mortgage? The borrower loses their leverage to negotiate…it’s really that simple… here’s a great article from Gail Vax-Oxlade telling us what she thinks about TD’s new collateral mortgage. Remember, collateral mortgages are not accepted by other financial institutions for transfers….
This subject isn’t going away… we will see if other Banks will follow TD’s lead and go with a collateral mortgage charge or whether they will accept collateral mortgages for transfers. Stay tuned for more on this major shift in mortgage registration.
And who will pay that extra cost to transfer mortgages in and convert them to TD’s collateral charge? For now, it’s TD picking up the cost, but does anyone really expect that to continue? At some point, that cost will most likely be passed to the consumer.
TD is taking a big risk.. maybe it’s a calculated risk… they certainly have the deep pockets to pay for this.. at least for a little while…. I’m sorry to say it looks like the TD borrower is going to lose out in the end.