The Mortgage Radar includes news and blog articles that have come across my desk in the past 7 days that I think are of interest, or provide entertainment value.
TD Bank announced a major change to the way they register their mortgages, changing them from a “standard charge” to a “collateral loan.” The end result is that borrowers will be handcuffed to TD. Ultimately, this is a strategy to prevent borrowers from leaving TD at maturity. They are selling it to borrowers by allowing them to register up to 125% of the current market value of their home. Ironically, the very next day TD released a report that excessive personal debt is a concern.
For many people, buying a rental/investment property is a high priority, but one should always be wary of the challenges and costs that come with owning a rental property. Read about the Landlord Blues and if you are into the numbers, check out the latest on buy/rent ratios from The Globe & Mail, and lastly a great article about Why You Might Rent Your home from The Star.
3 or 4 years ago, lenders and insurers developed mortgage products to accommodate self-employed individuals, making it easier for business owners and commissioned sales people to secure financing. Today, many of those programs have disappeared and securing a mortgage is more complex for self-employed individuals.
The Conference Board of Canada estimates that immigration will peak at 350,000 immigrants a year by 2030, accounting for more than 80% of population growth. Financial institutions are no slouches and recognize that this represents a large chunk of business.
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