TD has just announced that all new mortgages set up under them as of October 18th will be registered as a collateral mortgage. This article in the Globe and Mail further outlines this change and how it affects home buyers and home owners. TD Bank will spin this a benefit to the client but don’t be fooled, as it acts as handcuffs to their institution. A collateral mortgage is not transferable which means that if you ever wanted to switch your mortgage at any time it must be completely paid and fully discharged resulting in legal costs born by the client. Today, with a standard mortgage charge, clients have the ability of transferring their mortgage within their term or at maturity to a new lender without the services of a lawyer. This is a strategic tactic of the bank to continually find a way to trap their clients. Be aware of these so-called benefits and get the facts your bank wont tell you.