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Collateral Mortgages

 

A collateral  charge is another way to secure a mortgage loan on your property. More and more lenders are switching to this type of registration  for a loan secured on your property. The lender is offering you a re-advance-able loan upon qualification , without the cost of legal fees as they register 125% of the value of the home.

 

You will not be able to get a second charge registered on your property no matter what your equity amount, e.g. secured line of credit. You cannot transfer this loan without incurring expenses. If you were to move this mortgage to another institution you would need a lawyer to register the new mortgage.

 

Check with your mortgage broker to ensure that this is the type of lender and mortgage product you are looking for. A collateral charge is not the best product for everyone!


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