View Full Version : How this for a kick in the pants
12-18-2008, 05:43 PM
we are just about to remortgage our house and had everything signed when my lawyer requested the mortgage discharge papers from our existing bank. When he recieved it he almost had a heart attack. Most places want three months interest this place had that in the paperwork or some other formula and I have to pay which ever is greater. Turns out the formula is greater and it is going to cost me $14000 to break the mortgage instead of the $1300 at most other places. Merry f$&^%$&%^ing Christmas!
Just give them the house if thats what its all about. That is terrible. You tell us who the company is so we can avoid them.
12-18-2008, 06:05 PM
It was a bank out west and they had a mortgage division, but as of this past spring they got out of the mortgage business. They are still servicing their existing clients but not taking on any new ones.
12-18-2008, 06:20 PM
Was your mortgage original a Cashback deal? like 5% or 7% cashback on the mortgage amount?
12-18-2008, 07:13 PM
WOW! Now that's excessive! I'm heading out for a supper date right now but I'll call you tomorrow, we can plan a robbery or something. Let me know if I need to bring my own libation.
12-18-2008, 08:34 PM
Hmm our mortgage is out west too, interesting. could you pm me who it is
12-18-2008, 08:41 PM
This sounds like something illegal in this country. According to Canadian anti "loan shark" laws and interest rates this should not be legal at all.
Unless your mortgage was a high risk one where you had bad or high risk credit this is not legal.
Your lawyer should look into this and if he/she does not find a new lawyer.
12-18-2008, 10:18 PM
we can have a party and leave some hot grease on the stove when we go out to the bar, problem solved
Don't people read the agreement/contract when signing a mortgage? If it isn't in the contract, then you can fight it. if it is, it is your fault for not paying attention.
You can't blame the bank/financial institution for your ignorance.
12-19-2008, 12:51 AM
No it was not a cash back deal and yes I read my agreement but it had the standard wording of three months interest or interest differential whichever is greater, however I'm not a specialist or an accountant and everyone said this was a normal clause, nobody (my lawyer or my broker can figure out how they are coming up with this figure) I'm going to demand to see their figures tomorrow and see how they figured it out. My lawyer has already written a complaint letter to the company president and filed a complaint with the government agency that oversees these things so hopefully someone responds quickly.
Why deal "out west" when you can get good service here from mortgage specialists?
12-19-2008, 12:47 PM
I think that's referred to as shopping for the best deal? :omg:
12-19-2008, 12:50 PM
Out west is just where the bank is headquartered. I went throught a mortgage broker here in the soo.
12-19-2008, 12:56 PM
Most places want three months interest this place had that in the paperwork or some other formula and I have to pay which ever is greater.
"some other formula"??
Clearly you didn't read your mortgage contract..but who does?...lol Probably because it wasn't important at the time. Sucks doesn't it.
12-19-2008, 01:02 PM
No I read it I just don't understand it, and the laywer and the broker at the time said it was a standard clause. they apparently didn't read it close enough. But it certainly is something I'm asking about on the next one.
12-19-2008, 01:04 PM
I worked it out and the penalty adds up to 31 months worth of interest.
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