One client has a mortgage with Scotiabank….$109k balance with a 3.60% interest rate and 3 yrs remaining… her penalty to get out is $4,000…! That’s 10 months worth of interest.
Another client has a mortgage with TD Bank…. $213k balance with a 5.35% interest rate and 1 yr remaining… his penalty is over $8,000…..! That’s equal to almost 9 months worth of interest.
If these penalties scare you then keep reading…there is a solution…
There are better alternatives to the BIG SIX Banks…. There are several smaller Lenders, good reputable firms, that don’t use the same formula to calculate your penalty….. and you don’t have to give up anything on rate, terms or prepayment privileges…
Had the Scotiabank client gone with one of my other Lenders, then her penalty would have been around $1340… and the TD Bank client’s penalty would have been around $5140.
Get an unbiased opinion…. Speak with a neutral party…. Call your Mortgage Broker before making any decisions…. If you don’t have a broker, call me…I’ll be glad to help.
As an industry insider, Steve will share info that the BANKS don't want you to know. Steve has appeared on TV's Global Morning News, CBC's "Our Toronto" and The Real Life TV show. He's also been quoted in several newspapers such as the Globe and Mail, The Toronto Star, The Vancouver Sun, The Star Phoenix, etc.