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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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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…)

Tips for Credit

Most adults have several different types of debt; Credit card, car loan, line of credit, and the biggest one, your mortgage.   There is nothing wrong with this, but we have to be careful to use these credit lines properly, to know what the product is, and whether you are getting the best product for your needs.

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Why is it Important to Know About Debt Consolidation Options?

Debt consolidation refers to taking all your separate debts and creditor and putting them into a single loan.  Making it easier for borrowers because it there is only one payment, less interest paid on each dollar, strengthens credit scores, and simplifies the repayment process.  

A debt consolidation loan’s terms will depend on your credit score (the better your credit score, the better the interest rate), amount of debt, and type of loan taken.

Debt consolidation loans come in many forms and cover consolidating many types of debts.

How to Get a Debt Consolidation Loan?
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