Products

Collateral charge mortgage

A mortgage registered against your property for more than the actual loan amount, letting you increase the limit later without re-registering. Common at TD and Scotia. Makes inter-lender switches harder mid-term.

A collateral charge is registered for more than you borrow — often up to 100–125% of the home's value — so you can re-advance or add a HELOC later without new legal fees. TD and Scotiabank register most of their mortgages this way.

The downside shows up at renewal: a collateral charge generally can't be 'switched' to a new lender for free the way a standard charge can. The new lender needs a full refinance with legal costs, which quietly reduces your ability to shop your renewal.

It's not automatically bad — if you'll likely tap equity during the term, the flexibility is useful. Just know it's there so it doesn't surprise you when you try to move lenders later.

Sources

Renewing your mortgage (Financial Consumer Agency of Canada)

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Refinance

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A lender

A bank or monoline that prices its lowest rates and tightest underwriting against borrowers who fit prime credit, income, and property criteria. The big banks (RBC, TD, Scotia, BMO, CIBC, NB) and major monolines (MCAP, First National, MERIX) are A lenders.

B lender

An alternative ("alt-A") lender that prices higher than A lenders but flexes on credit history, income documentation, property condition, or self-employed earnings. Examples include the alternative-lending programs of Equitable Bank and Home Trust.

Bridge financing

Short-term loan that lets you close on a new home before the sale of your existing one funds. Priced at prime + premium, secured against both properties, typically up to 90-120 days.

Closed mortgage

A mortgage that limits how much extra you can prepay each year and charges a penalty if you break the term early. Almost all standard Canadian mortgages are closed because the rates are materially lower than open.

Conventional mortgage

A mortgage with at least 20% down. No mortgage default insurance required. Pricing is typically higher than insured because the lender carries more of the credit risk.

HELOC

Home Equity Line of Credit

A revolving line of credit secured against your home, typically up to 65% LTV stand-alone or 80% combined with a mortgage. Variable rate (prime + spread), interest-only minimums, redraw any time.

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