CTV Morning Live: Mortgage Minute - August 11
Frank Napolitano of Mortgage Brokers Ottawa joins Jeff Hopper on CTV Morning Live to look at the two different types of mortgages in this week’s Mortgage Minute.
On this week's episode of the Mortgage Minute, Frank Napolitano talks to Jeff Hopper about the difference between a standard and collateral mortgage.
Banks tend to push the collateral mortgage to the customer by up selling the fact that if you ever need to borrow more money against your property, you can obtain these extra funds without having to go to a lawyer. The truth is that at the end of your mortgage term, it may cost you more to switch out to a different lender due to increased legal costs, increased penalties and if you've borrowed too much funds, they will need to be paid back prior to switching out. Unlike a standard mortgage where at the end of the term, if you come across a better rate with another institution, you can switch your mortgage to that institution with minimal costs. Breaking out of a standard mortgage early tends to come with much cheaper penalties as well as legal costs for registering a standard mortgage.
It is important to have the discussion of penalties and what mortgage product is right for you. Contact one of our mortgage brokers today for advice.