*Updated* Ongoing Bank of Canada Benchmark Rate Announcements

[bizaro86]

Originally Posted by PaperBagger'14

What are my options when it comes to renewing a very small mortgage? My mortgage is up next July, a sizeable amount of money would be put down and the remaining mortgage will be <50k. Obviously the intent is to wipe off the remaining balance ASAP, what is the best way of renewing a mortgage to do that?

If you're renewing to small amount and are paying it off quickly I'd go with a HELOC. Should be cheaper than an open mortgage and more convenient to make payments to as well.

[Fuzz]

When I was close I renewed for a 3 year floating. I was assured there would be no early penalties to pay off sooner, and there wasn't(if you follow the rules). I was able to do bulk payments at the 10% rate of the original mortgage(not the renewal amount remaining), plus the double up payments, which avoided any over-payment penalties.


Once the last payment was made and the balance is zero, there is a small discharge fee. I think it was under $100. Plus the celebration party, which was probably more than $100.

[PaperBagger'14]

Originally Posted by Fuzz

When I was close I renewed for a 3 year floating. I was assured there would be no early penalties to pay off sooner, and there wasn't(if you follow the rules). I was able to do bulk payments at the 10% rate of the original mortgage(not the renewal amount remaining), plus the double up payments, which avoided any over-payment penalties.


Once the last payment was made and the balance is zero, there is a small discharge fee. I think it was under $100. Plus the celebration party, which was probably more than $100.

So there’s no penalty for “breaking” the mortgage early by paying it off with my yearly lump sum 10% of OG mortgage value? Aside from that $100 fee which whatever who cares.

You bet your ass there’s gonna be a mortgage burning party when that’s done.

[Fuzz]

There wasn't with Royal Bank. I'd definitely confirm with your lender though.

[Engine09]

This thread is giving me nightmare flashbacks to my ScotiaBank ordeal 5 years ago, I posted about it the time, got some advice, etc.

I sent in a form weeks in advance requesting Scotia to convert to open as I would not be renewing with them. The date came and they automatically renewed at a terrible rate.

I started making calls, first they claimed to not receive the form then finally admitted they did but it was ignored, I continued to argue with them until I went up the chain and finally spoke to a bulldog of a woman who told me ScotiaBank require verbal instructions to convert so they do not care about the request I sent in even if it was sent by myself and signed officially askign them to not renew.

Basically I was supposed to call and ask them in person. Scumbags. Eventually they sent me less than half of my money back, the penalty I paid to break at full term. Posted in hopes it will save someone else the headache.

[CorsiHockeyLeague]

Yeah, I'd be suing if that happened to me. For like, boatloads of money.