TD Mortgages change / collateral charges

[housingrental]

As opposed to the homey, personable, and easily accessible power holders of a Calgary based company?
QUOTE (bizaro86 @ Nov 23 2010, 10:16 AM) This alone seems like a good reason to avoid them, at least for awhile. If they don`t understand the products themselves, they`re way more likely to make a mistake, since many bank employees work simply by rote, no critical thinking required. And trying to get a mistake corrected by a large, impersonal, Torontonian bureaucracy is much more difficult than getting it right the first time, so if there is an error, it may be a fight to get it fixed.

Thanks for getting back to us with the details though, as it helps all of us stay abreast what`s happening out there.

Michael

 

[bizaro86]

QUOTE (housingrental @ Nov 23 2010, 09:35 AM) As opposed to the homey, personable, and easily accessible power holders of a Calgary based company?

Touche! I`ll amend it. A large, impersonal bureaucracy, IN GENERAL is likely to be resistant to a change outside their standard set of procedures, even if it was their own mistake. That is likely true of bureaucracies based anywhere, not just Toronto. The particular institution that we`re discussing is based in, and takes its name from, Toronto, so the description is accurate, but maybe overly pointed.

Michael

edited to add: I hope I`m not being overly grouchy this morning. It`s -30 here, which hasn`t brightened my day. (Although I do enjoy living in Canada`s sunniest major city in general: http://www.currentresults.com/Weather-Extr...iest-cities.php )

 

[Detox]

QUOTE (bizaro86 @ Nov 23 2010, 09:16 AM) This alone seems like a good reason to avoid them, at least for awhile. If they don`t understand the products themselves, they`re way more likely to make a mistake, since many bank employees work simply by rote, no critical thinking required. And trying to get a mistake corrected by a large, impersonal, Torontonian bureaucracy is much more difficult than getting it right the first time, so if there is an error, it may be a fight to get it fixed.

Thanks for getting back to us with the details though, as it helps all of us stay abreast what`s happening out there.

Michael

The only reason I am even considering this is because I am already with them, and the penalty to leave is big enough to give them consideration. If this was the end of my term rate shopping I would avoid them like the plague.

 

[mortgageman]

A couple of issues you might consider before using TD for your mortgage(s).
TD compounds interest monthly on their variable rate mortgages.
Second, they require 35 percent down on rentals otherwise the deal must be insured.

 

[Detox]

QUOTE (mortgageman @ Nov 24 2010, 05:57 PM) A couple of issues you might consider before using TD for your mortgage(s).
TD compounds interest monthly on their variable rate mortgages.

How do some other institutions compound their variable mortgage interest?

 

[Thomas Beyer]

QUOTE (Detox @ Nov 24 2010, 06:32 PM) How do some other institutions compound their variable mortgage interest?
semi-annually is the norm in Canada !

 

[bizaro86]

QUOTE (ThomasBeyer @ Nov 24 2010, 09:47 PM) semi-annually is the norm in Canada !


Indeed. And semi-annually compounding is better for the borrower than monthly compounding. But doesn`t TD still have to disclose the APR? I always compare APRs on loans, since they`re calculated using the same method everywhere. For example, Scotiabank discloses the APRs on their mortgages on their rates page: http://www.scotiabank.com/rates/mort_rates.html#nha_conv in the footnotes. They`re lower than the posted rates (but only slightly) because of the effect of compounding semi-annually.

Michael

 

[Detox]

QUOTE (bizaro86 @ Nov 25 2010, 08:34 AM) Indeed. And semi-annually compounding is better for the borrower than monthly compounding. But doesn`t TD still have to disclose the APR? I always compare APRs on loans, since they`re calculated using the same method everywhere. For example, Scotiabank discloses the APRs on their mortgages on their rates page: http://www.scotiabank.com/rates/mort_rates.html#nha_conv in the footnotes. They`re lower than the posted rates (but only slightly) because of the effect of compounding semi-annually.

Michael


That explains something. Both my TD conventional mortgage papers and TD collateral mortgage papers state that the interest is compounded monthly, however, on both papers it provides an example of the semi-annual interest rate. When I asked the bank to help me differentiate between the two values, they stated they only show the semi-annual rate because they are required to as an example, but compounding is done monthly.

I wasn`t aware that TD was outside the norm compounding monthly vs semi annually.

 

[housingrental]

This is an excellent post!!!
QUOTE (bizaro86 @ Nov 23 2010, 12:08 PM) Touche! I`ll amend it. A large, impersonal bureaucracy, IN GENERAL is likely to be resistant to a change outside their standard set of procedures, even if it was their own mistake. That is likely true of bureaucracies based anywhere, not just Toronto. The particular institution that we`re discussing is based in, and takes its name from, Toronto, so the description is accurate, but maybe overly pointed.

Michael

edited to add: I hope I`m not being overly grouchy this morning. It`s -30 here, which hasn`t brightened my day. (Although I do enjoy living in Canada`s sunniest major city in general: http://www.currentresults.com/Weather-Extr...iest-cities.php )