The Globe and Mail reports in its Friday edition that with economists expecting several more rate cuts, and 60 per cent of all outstanding mortgages coming up for renewal over the next two years, mortgage pricing in Canada is poised to get even more competitive. Guest columnist Penelope Graham writes that when shopping around, one product homeowners might want to steer clear of is a collateral-charge mortgage, which comes with restrictions around switching. A collateral-charge mortgage, also known as a readvanceable mortgage, is a type of loan that essentially bundles together your mortgage and a line of credit, based on the amount of your home equity. When a lender registers this type of mortgage, they will do so for an amount up to 125 per cent of the home's assessed value. That extra amount then gives the borrower the ability to tap into their home's equity either right away, if they have made more than a 20-per-cent down payment, or as it grows over time -- without having to apply and take on a separate borrowing vehicle such as the popular home equity line of credit (HELOC). Collateral mortgages are offered by Canada's biggest lenders. Some, including TD Bank and Tangerine, only offer collateral-charge mortgages.