January 29, 2013 Leave a comment
Collateral charge mortgages got more bad press on Friday after CBC’s Marketplace ranthis report.
The gist of it is thatcollateral mortgages“effectively trap you at the bank,” says the CBC (which is not entirely true…more on that below).
TD Canada Trust, which sells only collateral charge mortgages, was caught in CBC’s crosshairs. An undercover reporter went into a TD branch with a hiddencamera, asking the mortgage rep what made TD mortgages different than those at other banks.
After being questioned in four different ways, the TD rep finally disclosed that TD’s mortgage was a collateral charge, saying: