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Conventional Mortgage

Collateral Mortgages, and Why you need to be Careful!

Most mortgage borrowers don’t know what a collateral mortgage is.  When a lender registers your mortgage they can either register it as a “Collateral charge” or a “Conventional Mortgage Charge”. There are several lender’s who have done Collateral only mortgages for the last 8+ years so you may very well be in a collateral mortgage without knowing it.  So what does this mean to you?

  • col·lat·er·al
    /kəˈladərəl,kəˈlatrəl/
    noun
    1.something pledged as security for repayment of a loan, to be forfeited in the event of a default.
    synonyms: security, surety, guarantee, guaranty, insurance, indemnity, indemnification; backing
    “she put up her house as collateral for the loan”

The definition of collateral is self explanatory, however the way it works in mortgage lending is a more of a “Readvanceable Loan”.  Let me explain the difference between Collateral and Conventional.

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By Meghan Van Houten, ago

Common Types of Mortgages

There are many type’s of mortgages available in the Canada’s Lending Market, which makes being a home buyer an overwhelming process.

That is why using a Mortgage Agent is always advised as we will take the time to explain your options and help find you the right mortgage product for your current and future needs.

We have made a list that will hopefully help you understand what is right for you. This list comprises some of the most common types of mortgages available in Halton, Kitchener, Waterloo, Cambridge, Guelph and surrounding area’s. (more…)

By Meghan Van Houten, ago

Insured vs. Insurable vs. Un-Insurable.. What does it all Mean?

We used to have two primary mortgage categories, “High Ratio” or “Conventional” mortgages, but now we have insured, insurable and un-insurable.  What do these terms mean?
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Insured; a mortgage transaction in which the insurance premium is/has been paid by the client. (Generally, 19.99% equity or less to apply towards a mortgage, amortization of 25yrs or less, mortgage under $1Million, qualify at Bank of Canada(BoC) benchmark rate). (more…)

By Meghan Van Houten, ago