Where does the money for a Link come from? What proportion of each mortgage payment is dedicated to funding the Link?

September 26, 2017

A Link is a purely mathematical concept and so is not “funded” by anybody.  It follows that:-

  1. The mortgage balance does not increase merely because the borrower puts on a Link.
  2. No part of any mortgage payment is “earmarked” to a Link.  Rather, every dollar of every payment made by the borrower is applied to its mortgage account.