Understanding Collateral Charge Mortgages

Marci • January 9, 2013

Collateral charges aren’t new, but they are something you should learn about as they are becoming more common in the mortgage world. If you haven’t heard about collateral charge mortgages, or don’t understand them, you’re not alone. It’s one of the financial world’s “good news / bad news” items.

 

The definition of a collateral charge is a charge on the title of a property attached to a promissory note – ie – a requirement to pay a loan made secure by a property. While having a promise to pay, attached to a line of credit (the typical use of collateral charges) makes sense, this format is growing in use with mortgages.

 

The good news about collateral charges is they allow a re-advanceable form of lending. If you want more money down the road, you won’t need to re-register the mortgage. This will save you the pains of refinancing along with costs of the legal fees.

 

They can be registered for the full value of the home – or even more! (One of TD Bank’s allows for them to register up to 125% of the property value). Ultimately a collateral mortgage is always registered for more money than you require at closing – 100% of the value or more. In a standard mortgage, your mortgage is registered with Land Titles only for the amount you need.

 

The bad news is moving your mortgage at renewal will cost legal fees as you will need to re-register with a new lender. This means, you want to avoid collateral charges if you want the ability to shop around when your mortgage is up for renewal. A collateral mortgage is not transferable without a lawyer or notary. It’s like starting the mortgage over when you want to switch lenders.

 

Additionally, second mortgages or home equity lines of credit are often impossible to obtain without a significant appreciation in the value of your home because the registration amount is already at the full value (or more), so there may be little or no equity room.

 

Most mortgage professionals see collateral charges as a way for banks to retain customers at renewal, but most borrowers want to keep their options open. You can see the push and pull. If you want to know more about this – or any other mortgage advice, please drop me a note.

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Smart Strategies to Save for Your Down Payment

By Marci Deane • March 25, 2026
How to Start Saving for a Down Payment (Without Overhauling Your Life) Let’s face it—saving money isn’t always easy. Life is expensive, and setting aside extra cash takes discipline and a clear plan. Whether your goal is to buy your first home or make a move to something new, building up a down payment is one of the biggest financial hurdles. The good news? You don’t have to do it alone—and it might be simpler than you think. Step 1: Know Your Numbers Before you can start saving, you need to know where you stand. That means getting clear on two things: how much money you bring in and how much of it is going out. Figure out your monthly income. Use your net (after-tax) income, not your gross. If you’re self-employed or your income fluctuates, take an average over the last few months. Don’t forget to include occasional income like tax returns, bonuses, or government benefits. Track your spending. Go through your last 2–3 months of bank and credit card statements. List out your regular bills (rent, phone, groceries), then your extras (dining out, subscriptions, impulse buys). You might be surprised where your money’s going. This part isn’t always fun—but it’s empowering. You can’t change what you don’t see. Step 2: Create a Plan That Works for You Once you have the full picture, it’s time to make a plan. The basic formula for saving is simple: Spend less than you earn. Save the difference. But in real life, it’s more about small adjustments than major sacrifices. Cut what doesn’t matter. Cancel unused subscriptions or set a dining-out limit. Automate your savings. Set up a separate “down payment” account and auto-transfer money on payday—even if it’s just $50. Find ways to boost your income. Can you pick up a side job, sell unused stuff, or ask for a raise? Consistency matters more than big chunks. Start small and build momentum. Step 3: Think Bigger Than Just Saving A lot of people assume saving for a down payment is the first—and only—step toward buying a home. But there’s more to it. When you apply for a mortgage, lenders look at: Your income Your debt Your credit score Your down payment That means even while you’re saving, you can (and should) be doing things like: Building your credit score Paying down high-interest debt Gathering documents for pre-approval That’s where we come in. Step 4: Get Advice Early Saving up for a home doesn’t have to be a solo mission. In fact, talking to a mortgage professional early in the process can help you avoid missteps and reach your goal faster. We can: Help you calculate how much you actually need to save Offer tips to strengthen your application while you save Explore alternate down payment options (like gifts or programs for first-time buyers) Build a step-by-step plan to get you mortgage-ready Ready to get serious about buying a home? We’d love to help you build a plan that fits your life—and your goals. Reach out anytime for a no-pressure conversation.

Bank of Canada Holds Rate at 2.25% — March 18, 2026

By Marci Deane • March 18, 2026
The Bank of Canada announced today that it is holding its target for the overnight rate at 2.25%, with the Bank Rate at 2.5% and the deposit rate at 2.20%. For anyone watching the mortgage market — whether you're renewing, purchasing, or simply keeping an eye on borrowing costs — here's a breakdown of what was announced and what it may mean for you.

Is Now the Right Time to Buy? A Look at Canada's 2026 Housing Market

By Marci Deane • March 17, 2026
For many Canadians, the dream of homeownership has felt like a moving target. After years of market volatility, shifting interest rates, and economic uncertainty, you might be wondering: is 2026 finally the year to make a move?