
Federal Budget brings standard mortgage penalties
Minister of Finance, Jim Flaherty released the 2010 Federal Budget yesterday… There were a lot of headlines in the media but for the most part, very little change for the average Canadian…
One change I did like is the standardization of mortgage prepayment penalties… No details were released but this could be welcome news for tens of thousands of Canadians that are in a fixed rate mortgage and can’t get out…..
You’ve been hearing about the govt stimulus plan… record low interest rates to help out Canadians… and then you contact your bank to see how much you save… it’s good news.. your payment on a $250,000 mortgage with a 5.25% rate will drop by $189/mth with a 3.89% rate… it’s so exciting… that’s $11,340 over a 5 year term…. but WAIT… now you get told there is a penalty.. and it will cost you $13,000 to break your mortgage….
Sound unbelievable? Call your bank to see how they calculate their penalties… Those who have already done so know the reality of these numbers….. The govt forgot about helping existing homeowners… the tens of thousands of taxpayers that needed and wanted a break…
How do you feel about the Big Six Banks reporting Billion $ profits in the first quarter? After all, didn’t the govt offer financial support to help the banks in case they ran into trouble? Profit is good.. but not like this.. not at this time.. not when average Joe or Sally homeowner can’t benefit…