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onetwo_threefour · 05-21-2009, 06:37 PM

Just a quick note on penalties...

The email saying you would only be charged if you paid out the full amount under the closed fixed before the end of term isn't right either. If you want to pay off anything more than the lump sum percentage that the bank allows (be it 10,15,20, or 25 percent) they will charge you a penalty on the excess even if you aren't paying off the whole thing. That's not usually a problem as most people paying off more than the privilege amount are paying off the whole thing but not always. Also, I believe that one lender actually combines the double payment option with the lump sum option so that if you are making double payments it is eating up your privilege room for a lump sum.

One final point about the email re RBC privileges. I believe you said it was only on the anniversary of the mortgage. As far as I know that is wrong. RBC allows multiple prepayments in the mortgage year (as opposed to calendar year) as long as they don't total more than 10 percent of the original principal balance, each prepayment is no less than $500, and is made on a regular payment date. Only a couple of lenders make you save it up all year to pay out once. You're much better off putting an extra 500 a month rather than waiting to put down 6000 at the end of your mortgage year.

05-21-2009, 06:37 PM	#42
onetwo_threefour Powerplay Quarterback Join Date: Apr 2006 Location: Mahogany, aka halfway to Lethbridge Exp:	Just a quick note on penalties... The email saying you would only be charged if you paid out the full amount under the closed fixed before the end of term isn't right either. If you want to pay off anything more than the lump sum percentage that the bank allows (be it 10,15,20, or 25 percent) they will charge you a penalty on the excess even if you aren't paying off the whole thing. That's not usually a problem as most people paying off more than the privilege amount are paying off the whole thing but not always. Also, I believe that one lender actually combines the double payment option with the lump sum option so that if you are making double payments it is eating up your privilege room for a lump sum. One final point about the email re RBC privileges. I believe you said it was only on the anniversary of the mortgage. As far as I know that is wrong. RBC allows multiple prepayments in the mortgage year (as opposed to calendar year) as long as they don't total more than 10 percent of the original principal balance, each prepayment is no less than $500, and is made on a regular payment date. Only a couple of lenders make you save it up all year to pay out once. You're much better off putting an extra 500 a month rather than waiting to put down 6000 at the end of your mortgage year. __________________ onetwo and threefour... Together no more. The end of an era. Let's rebuild... Last edited by onetwo_threefour; 05-21-2009 at 06:48 PM.