WHY YOU SHOULD NEVER GET A MORTGAGE FROM YOUR BANK  

By Tracy Luciani  

The age old adage is so true, ‘DON’T PUT ALL YOUR EGGS IN ONE BASKET.’  Yet so many homeowners do without realizing the huge risks they are taking, by doing so.   If people thought about it for just a second, it makes no sense to give up all your control to one bank, YOUR BANK!    

In essence if you do, YOUR bank owns YOU!  Your paycheque, your mortgage, your visa, your line of credit and your bank accounts.   If you don’t make a payment on any of these debts, the bank has the right to access your bank account and paralyse you.   We have seen it many, many times, good people who always pay their bills, one day have a problem.  People have lost the homes because the bank had total control of everything.     Keep control on your finances by making sure you do not take a mortgage with the bank you deal with!  

Scarier than this, is many of the major banks and some credit unions are putting collateral mortgages on their clients homes.  The mortgage is registered up to 125% of the value of the home.  Since many of these mortgages are closed in the branch, many homeowners do not know the bank has registered the mortgage much, much higher than the actual debt.  If you don’t know whether or not your bank has registered a collateral mortgage against your property, a simple title search will tell you.     

Sure we all need our banks for our chequing and savings accounts so we can manage our financial affairs.  But why give your bank, unbridled full control over everything! We have many lenders who are not banks which offer better rates, a mortgage for only the amount that is borrowed and with much reduced penalties in the event you sell or refinance. And you don’t have to change your banking because the debit for the mortgage can be with a void cheque from your bank.   Sure we still deal with the major banks in some mortgage situations but we make our clients aware of what’s in the fine print of their mortgage commitments and caution them about the pitfalls of a collateral mortgage.  Call us for the best mortgage advice each and every time.