By: David Larock, Mortgage Planner, Integrated Mortgage Planners Inc.
If you have an open mortgage, you can discharge your mortgage at any time without penalty but if you have a closed mortgage with a fixed term you may have to pay a costly mortgage interest penalty depending on how much time is left on your term. The penalty amount will vary and can be quite high. Avoid paying a penalty to the bank because it's your hard earned money going down the drain. If you have a costly mortgage penalty that is preventing you from selling today, we can purchase your property through our Home Buying Program that will save you from having to pay the penalty. We specialize in these types of situations without charging you any fees or real estate commissions. Contact us with any questions you have: 604- 812-3718. Why Do Fixed Rate Mortgage Penalties Matter and How Is Your Penalty Calculated? Many people think that the differences in how lenders calculate fixed-rate mortgage penalties are a non-issue now that rates have fallen to ultra-low levels. Nothing could be further from the truth.

Mortgage application

Banks Operate Under the Scrutiny of Government Watchdogs. But When It Comes To Mortgages, Those Watchdogs Don’t Watch Everything They Could.

By: Rob Mclister / Speacial Report to the Globe and Mail
If you feel that your bank or broker is not acting in your best interest, use your own judgment and use the services of a bank or broker that meets your needs, not theirs. “Individual (bank) mortgage reps operate outside of regulatory boundaries which commonly govern licensed professionals,” says Samantha Gale, a former mortgage regulator with B.C.’s Financial Institutions Commission and chief executive officer of the Mortgage Brokers Association of British Columbia. Rules pertaining to mortgage rep competency, the suitability of mortgage recommendations and compensation disclosure are largely left to the banks themselves. That raises certain questions, like the procedure banks use when sending a mortgage applicant to another lender. At Royal Bank of Canada (RBC), for example, mortgage reps route applicants that don’t meet normal guidelines to their Alternate Mortgage Solutions (AMS) team. RBC’s AMS employees then farm those customers out to other lenders and the bank’s mortgage rep gets paid when the mortgages close. Some might easily mistake this practice for “dealing in mortgages,” an activity that normally requires a brokering license. But, because bank employees are the ones recommending the alternative lenders, and because banks are federally regulated, they aren’t bound by tough provincial rules that make it an offence to broker without a license.