Collateral Charge Mortgages - What You Need to Know
Updated: Dec 11, 2019
What is a collateral charge mortgage?
Who should get a collateral charge mortgage?
When you know you might want to access more of your home’s equity in the first few years of your mortgage for things like debt consolidation or renovations. A collateral charge mortgage will allow you to do so without incurring more legal fees.
Important facts to know about collateral charge mortgages?
Easier to access equity when your property increases in value
Withdraw home equity without refinancing
Good product if you want to consolidate debt or use your equity for renovations or investments
Difficult to switch to another lender upon renewal, legal fees may apply
New legal fees apply if you switch lenders prior to maturity for a better rate or product feature
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