This past weekend I sat down with some clients who have a mortgage with a local credit union. Of course, as do all credit unions and a lot of the bigger banks do, their mortgage was registered as a collateral charge.
The lender will say it's a bonus. I say it's a huge negative especially when there's no real difference in product with any other lender not doing this.
When I received these clients 'land titles Form B' I had noticed that the 'registered mortgage amount' was $700,000. Let's keep in mind the clients purchase price was a mere $315,000 (original mortgage balance of about $240k or so). I almost fell off my chair as this amount is massive. They're essentially tying you up for life unless you pay legal fees to get out.
For full explanations on these style of mortgages read a couple past blogs here and here
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Several discussions and conferences to buy to let mortgage for a place.
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