Collateral Mortgages… a different 50 shades of grey!

 In 2010, TD announced they would begin registering ALL new mortgages as a collateral charge.  The sale pitch was that it was good for the consumer.  It would allow TD clients to borrow more, in the future, without having to incur new legal fees.  Yes, that part is true.

But they’ve left out a lot stuff, too!   For years, Mortgage Brokers and other unbiased financial professionals, cautioned the public about collateral mortgages.    And in 2013, CBC Marketplace did an expose on TD and their retail branch’s lack of knowledge and disclosure.   Is this where you want to go for your mortgage?

By the way, TD wasn’t the only Bank to go with collateral charge only.   ING made the same move in Dec 2011.  And they used a similar sales pitch.   But my readers have been hip to this and aren’t getting fooled.

The federal govt was pressured into taking action to protect consumers.  In Sept 2014, the federal govt announced ‘more disclosure.  But have the Banks really given us more disclosure?  

Well, the CBC Marketplace did a follow-up on TD branches to see if the disclosure had improved or changed….  and based on this, I’d have to say NO!  It’s worse than ever.  Check it out.   (you have to fast forward to the 16:00 minute mark… or try this Facebook link.)

After watching this latest CBC Marketplace episode, I wonder what our Federal govt is thinking?  And did you catch that last part?  TD declined to speak with CBC…. they said they are working on better communication…   Let’s see, it’s been in the branches for over 4 years..  How long does it take to train staff?

My advice, speak with an unbiased professional.  Speak with a Mortgage Broker.  A Broker shops a wide variety Lenders and products.

Your best interest is my only interest.   I reply to all questions and I welcome your comments.  Like this article?  Share with a friend.

Steve Garganis 416 224 0114 steve@mortgagenow.ca