TOP 7 REASONS TO AVOID A BANK MORTGAGE
Back in 2010 the Big Banks introduced a new mortgage product called a ‘Collateral
Mortgage’ (CM). Today, Banks no longer offer the traditional ‘standard charge’
mortgage. CMs are dangerous and should be avoided. Here’s why:
1. CMs act as revolving credit giving you global limit access for potential future needs
without the need to pay legal fees. What, no lawyer? Look out it’s a trap.
2. The Collateral Mortgage is registered for more than the value of your property. Hence
it appears you have no equity. Therefore, no other creditor will touch you.
3. CMs secure every unsecured credit item ie) credit cards, loans, lines of credit etc.,
without your knowledge. Banks do not willingly tell clients this!
4. Even if you never miss a mortgage payment, but might be late on a few credit
card payments, the bank has the right to put your mortgage into default and increase
your interest rate.
5. Because CMs give the bank virtual control over your finances and are more difficult
to get out of without huge fees, the bank does not need to be competitive. They can
charge more and they can refuse you more easily. They end up with more profit, you
end of paying more. This is anything but a safe and friendly mortgage.
6. The banks now charge mortgage ‘break’ penalties, which are excessive and
unconscionable. When most people enter into a mortgage, they think they will not
move during the typical 5 year term. But life happens. Job loss, relocation, divorce,
death and the decision to move up or down etc., cause over 40% of borrowers to
break their mortgages. The cost is huge. Instead of paying 3 months’ interest like
before (typically $2,100) you now pay 3-4x more. We have seen some penalties
exceed $20,000. As a result many can’t move, and worse.
7. With every bank mortgage, staff are trained and get bonuses to sell mortgage life
insurance. They don’t ask any questions, nor are they trained to. This is the worst
scam of all. You are asked one very long, ambiguous (not several clear specific)
question(s) about your health history. If you are confused and want to decline
coverage they try to scare you into signing. This is called ‘Post Claim Underwriting’
where approval is automatic and premiums are collected until there is a claim. The
goal is then to deny any and all claims as possible. It really is a form of entrapment.
Beyond Collateral Mortgages, Penalties and bank Insurance the banks purposely
conceal and avoid providing proper disclosure makes getting a bank mortgage today,
very perilous.
We would be happy to sit down with you to share more. Please get informed.
Please watch these CBC MARKETPLACE episodes on YOU TUBE: COLLATERAL
MORTGAGE or COLLATERAL DAMAGE; COLLATERAL MORTGAGES - WHAT YOU
NEED TO KNOW; THE POSTED RATE SCAM about penalties; and ‘IN DENIAL -
MORTGAGE INSURANCE CANADA. They speak for themselves. It goes much deeper.
We are on your side. Please call us for more info.

CBC MARKETPLACE EXPOSES UNDERSIDE OF BANK MORTGAGES
If you own a house and have a mortgage, you must get informed about what’s really
going on with bank mortgages. In fact once you’ve watched these episodes, you will be
shocked, disgusted, even appalled and angered.
Kudos to CBC MARKETPLACE for doing such a good job and a public service by
exposing the extent to which the banks have gone to gouge customers for the sake of
profit.
The episodes can be found on YOU TUBE. Look for COLLATERAL MORTGAGE or
COLLATERAL DAMAGE; COLLATERAL MORTGAGES - WHAT YOU NEED TO
KNOW; THE POSTED RATE SCAM about penalties, and IN DENIAL - MORTGAGE
INSURANCE CANADA. The last one is a real jaw dropper as we see real life examples
of how lives are being destroyed. Victims use the words SCAM, SNOW JOB,
ENTRAPMENT etc. and they are ‘pissed’ as was stated more than once.
We have had clients call current bank practices ‘criminal’. One recently said “They are
getting away with murder.” You may feel the same way after you watch. At the minimum
our banks our cunning, callous, deceitful, and all too powerful. They have honed their
craft with such precision down to a science.
After one episode about collateral mortgages TD and the other big banks promised
changes to explain in easy to understand language, both in branch and online. CBC
went back to 3 branches to test this out. TD failed miserably and it became clear that
the banks ‘filibuster’ like politicians do by not really answering the question asked, and
often not at all. Because they just don’t care.
You owe it to yourselves to learn as much as you can about current bank practices. You
owe this to yourselves, especially if you are homeowners. Stop letting the banks take
advantage of you.
The old Mr. Potter (banker) was crafty. Today’s Mr. Potter is more than cunning.
For your next mortgage ask yourself where you can find a mortgage you can trust that is
not dangerous to your financial health. It should be clear, that is not with any big bank.
We deal with over 40 lenders who have policies and practices that are fair and friendly,
and we invite you to sit down with us for a leisurely discussion that will benefit you
greatly.

ELIMINATE DEBT BY MOVING UP WITH ONLY 5% DOWN
Most home owners think that only first time buyers qualify for the minimum 5% down
rule and that 20% down is required.
Not true. The 20% equity rule applies to refinance only. Yes it used to be the 5% down
was only for first timers and to qualify you could not own for at least 5 years. Those
guidelines where quietly eliminated back in 2002 when lending became easier. The
important news is that they are still in effect.
We see many people who want to move up and eliminate consumer debt but believe
they need 20% down. For this reason they think there is not enough equity to do both.
Wrong. We have successfully helped many clients sell their homes, pay off all existing
debt, putting 5% down on the next purchase all at the same time lowering their total
payments slightly.
END RESULT: BETTER/BIGGER HOME WITH DEBT GONE! Take Vicky & Tom who
had $80K in credit card debt and loans costing them $1,686 per month.
They sold for $357,000 less mortgage of $223,000 leaving a net $134,000 less 5% real
estate commission $17,850 less consumer debt $80,000 leaving them with $36,150
cash.
They bought a beautiful much larger home for $454,000 with 5% down of $22,700
leaving them sufficient funds for legal and closing costs. Note - with a 20% down
payment, this never would have worked. They also purchased bridge financing so they
could take 3 weeks to decorate and make some changes to their new home before
moving in. A low/no stress move indeed!
The magic lay in the final tally and swapping bad (high cost) debt for good (very low
cost) debt. Because todays rates are below financing costs 5 years ago, Vicky & Tom
ended up saving $416.00 a month from their previous situation.
Obviously to make it work, they needed to have sufficient equity and income to qualify
for the bigger mortgage, but what a solution. One that improved their quality of life
greatly, starting afresh with no consumer debt.
Many feel stuck with high consumer debt and payments and no where to go or get out.
We may have an answer for you.
Please call us for a free, no obligation review of your situation. We will provide you with
our analysis of your ability to trade up, possibly eliminate your debt, and put a big smile
on your face.
We love finding solutions like this, that you will not get from a bank.