It is very important that you understand all the aspects of taking out a 100% mortgage. There are pluses and minuses in everything and it's wise that you know both before committing yourself.

You may be required to deposit more cash or securities even after you have been approved the mortgage. This would be if the value of the securities given falls below a minimum amount required by the lender. A decline in the securities value used as collateral when taking out the mortgage may require you to provide extra cash. The extra cash would prevent the already given securities to be sold off by the lender.

The lender can force the sale of your securities in order to meet a collateral call. This is when the securities given to the lender fall below the minimum amount set by the mortgage lender. They have the right to sell your assets. The cash received from selling will then remain in your account until:

1. The mortgage is repaid

2. You instruct the lender to use the funds as a down payment     on your mortgage. This might be wise if repayments are too     much.

3. The home value increases to a level where the collateral     account can be closed.

4. The cash is applied to an outstanding mortgage balance if     you were to close it.

The lender or firm can sell the securities without contacting you if needed. Most firms will try to contact the mortgage holder but they might still sell your securities if a collateral call was near. The lender may also sell your assets if the market continued to decline.

You have no say in which of the securities you have placed down will be sold. Your right to choose which securities are sold is given away once the agreement has been signed. Many firms may still advise you of which particular securities they are looking to sell.

No extensions are given at the time of a collateral call. The only time you are allowed to extend the time period is if you meet certain requirements or conditions set.

If monthly payments are stopped (default on mortgage) you stand to lose your home as well as your securities. Many lenders might allow for you to sell your securities when you stop making payments.

If you would like to find out about other mortgage options fill in our mortgage form now and one of our mortgage advisors will contact you immediately to discuss all available packages to you.