Just yesterday we had a mortgage lender come in to our office and talk about their specific mortgage products and so forth. Some very good information and I’m glad that they came in! It’s always good to learn what other mortgage products are available to you, the public!
There was one thing though that this mortgage lender said that really made me cringe.
She was saying, they have been receiving numerous calls from a handful of brokers that have said their clients have been offered rates upwards to 1 1/2 percent higher than standard market rates today by they’re big bank, (I wont name them, however, it’s not uncommon practice for all) saying that ‘sorry you’re in a collateral charge mortgage and this is what we can offer you’. I myself have heard of this happening on occassion too. They know by registering a collateral charge mortgage they have you tied in much tighter and this is why the big banks are doing so. Seems quite unfair to me! Whose interests do they have in mind?
If there’s one message her, please, please, please speak to a licensed mortgage broker. We care about you and your best interests. Well, one other message, it’s NOT EVER just about rate. It’s about product.
As a side note, there are now 2-3 mortgage lenders that will transfer in a collateral charge with a very, very small fee. Which is fantastic as you’ll know how much I dislike these products and for more than just the lack of ability to transfer out at renewal.