Much has been said about this new mortgage offered by TD Bank and yes, this concept has been available in other institutions in the past and presently.
We are all familiar with conventional mortgages; we know that with this choice we establish the amount, interest rate and amortization period. We know that if we follow a plan and keep on track, our property will be paid off at the end of this amortization.
A collateral mortgage is a loan attached to a promissory note and backed up by the collateral security of a mortgage on a property. Typically a collateral mortgage is registered as a secure line of credit, allowing the balance of the loan to float up or down depending on the customer's use.
The primary benefit of a collateral mortgage is that this promissory note goes with a lien on the property of the total amount registered and up to 125% of the property value. The client will have to qualify and may use this benefit as he/she chooses.
Having said that, PLEASE heed this red light warning:
The collateral mortgage allows "re-advancing" of principal: like a revolving line of credit. The balance can rise and very often does, with most people ignorant about the holes they are digging for themselves. Most chartered banks will not accept "transfers" of collateral mortgages especially once they are inflated with other credit cards, car loans and other lines of credit that you may have with TD Bank. There are conditions involved such as the inability to switch on renewal.
I have been a costumer of TD Bank for years and still am - no longer with my mortgage but with my daily transactions and savings plans. As a Realtor I have recommended this institution hundreds of times.
This new type of mortgage may be for you. If so, please read the fine print on the the contract or, better yet, have your solicitor do it on your behalf.
Monday, October 25, 2010
Thursday, October 14, 2010
Preventive Maintenance
This blog is in direct relation to my last week's blog where I discussed how to deal with natural wear and tear. I would like to share with you this week; how to be pro-active regarding house maintenance. The following preventive measures are relatively inexpensive and usually only need to be addressed once or twice a year.
Roof: Fall and spring are good times to conduct routine maintenance on the roof, including the replacement of missing or damaged shingles or tiles and checking for signs of blistering or damage that can lead to leaks. Clear all debris from the roof and gutters, especially the valleys where it can accumulate and cause water to puddle.
Siding: Clean your home's exterior with a garden hose sprayer and mild detergent or a power washer after winter passes. Tighten loose trim and add caulk to areas with cracks and keep the elements from intruding and causing further damage to the structure.
Decks: Wash and treat wood with paint or a weatherproofing product to prevent cracking and get them in prime condition for spring and summer outdoor entertaining.
Irrigation: Check sprinkler systems thoroughly before the summer approaches to spot and fix leaks and make sure water is not spraying against the home's foundation or siding.
Basement: Watch for signs of moisture intrusion and find the source of any leaks that can lead to serious mold or fungus problems if left unaddressed.
HVAC: Change the filter in your air return as often as recommended by the manufacturer. Some types need to be replaced every one to three months, while others last six months or longer.
Dryer: Remove accumulated lint from the exhaust duct at the back of the dryer and use a long-handled brush to clear the vent that leads outside. Blockages not only impact performance, they can also be fire hazards.
Roof: Fall and spring are good times to conduct routine maintenance on the roof, including the replacement of missing or damaged shingles or tiles and checking for signs of blistering or damage that can lead to leaks. Clear all debris from the roof and gutters, especially the valleys where it can accumulate and cause water to puddle.
Siding: Clean your home's exterior with a garden hose sprayer and mild detergent or a power washer after winter passes. Tighten loose trim and add caulk to areas with cracks and keep the elements from intruding and causing further damage to the structure.
Decks: Wash and treat wood with paint or a weatherproofing product to prevent cracking and get them in prime condition for spring and summer outdoor entertaining.
Irrigation: Check sprinkler systems thoroughly before the summer approaches to spot and fix leaks and make sure water is not spraying against the home's foundation or siding.
Basement: Watch for signs of moisture intrusion and find the source of any leaks that can lead to serious mold or fungus problems if left unaddressed.
HVAC: Change the filter in your air return as often as recommended by the manufacturer. Some types need to be replaced every one to three months, while others last six months or longer.
Dryer: Remove accumulated lint from the exhaust duct at the back of the dryer and use a long-handled brush to clear the vent that leads outside. Blockages not only impact performance, they can also be fire hazards.
Monday, October 11, 2010
Watch Out for Ordinary Wear and Tear
It's a good idea for homeowners to expect some natural deterioration and budget appropriately for repairs and improvements that are likely to become necessary given the age and condition of their home. For buyers who are considering a purchase, a property inspector can provide specific information in regards to the age of a home's most vital systems and its overall construction quality.
The hardiness of the materials used to build a home generally determine how long the components are likely to last, but the quality of the installation, intensity of use, local climate conditions and level of maintenance can all impact their actual longevity.
The repair bills for a destructive roof leak or an inconvenient appliance failure can really catch homeowners of guard, and while it may seem like a disaster at the time, standard insurance policies don't cover damage or repairs that result from normal wear and tear or lack of maintenance.
Regular upkeep can help extend the life of your home's components and save you thousands of dollars over time. Many of them are simple enough thatyou may want to do them yourself, but a handyman (please refer to my Referral Directory on my website) is only a phone call away if you find you need some help.
The hardiness of the materials used to build a home generally determine how long the components are likely to last, but the quality of the installation, intensity of use, local climate conditions and level of maintenance can all impact their actual longevity.
The repair bills for a destructive roof leak or an inconvenient appliance failure can really catch homeowners of guard, and while it may seem like a disaster at the time, standard insurance policies don't cover damage or repairs that result from normal wear and tear or lack of maintenance.
Regular upkeep can help extend the life of your home's components and save you thousands of dollars over time. Many of them are simple enough thatyou may want to do them yourself, but a handyman (please refer to my Referral Directory on my website) is only a phone call away if you find you need some help.
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