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TD Bank Changes their Mortgages

TD Bank announced changes to their mortgages.  These changes are pretty subtle to the consumer but TD customers should be aware that these changes don't seem to be in their interest but rather to the benefit of TD Bank.........Big Surprise eh?

The new Collateral mortgages are not portable, which means transferring to another institution from TD  (even at renewal) will be very difficult due to the costs involved

To current TD customers, it means that when its time to renew your mortgage you are at the mercy of TD to offer a competitive rate.  If history tells us anything, its that the banks do not offer competitive rates unless and until they are forced to do it.  This change makes if harder for the customer to challenge the rate offered by the bank for a refinance or at renewal.

It will be difficult to register a second mortgage behind these due to the first being registered for such a high amount.  The customer could be looking at having to discharge existing first which could result in penalties and legal fees.

Keep in mind that a collateral mortgage is exempt from the provisions of the Interest Act with respect to compounding. This may mean a TD mortgage will be compounded MONTHLY as opposed to semi-annually.  They are already using monthly compounding for their variable rate mortgages and HELOC. 

Last Updated (Monday, 18 October 2010 16:25)

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