mortgage question

[bubbsy]

Hey CP,

With the baby quickly growing and we needing more space, we decided to go out and buy a new home....

So initially i was intending on keeping my condo as a rental property after purchasing our home (possession date end of may). I renegotiated the financing of the condo to get some equity out to put it down towards my house. The person at the bank (TD) i was working with convinced me to go fixed seeing as i could control risk and the interest would be tax deductible.

Financially things were getting tight, and some circumstances changed so we decided to sell the condo (it is sold now, possession a week after i get possession of the home).

So now, as i'm locking into my my home mortgage, naturally TD is charging me about 5 grand (knocking off any additional fees ~$550 if i get the home mortgage with them) for getting out of the condo mortgage.

Am i stuck here, or is there any options to lower the blow (5k hit) ?

Any insights would be greatly appreciated (other than mocking my poor decisions leaving me in such a predicament)...

[WilsonFourTwo]

Of the top of my head, I'd say you're stuck.

If you'd ported the mortgage over to the new place there'd be room to negotiate, but since they're two separate mortgages I doubt there's anything to do (sorry). It's all just unlucky timing.

On the flip side, congrats on the healthy baby and the new house! Silver lining, right...?

[bizaro86]

Originally Posted by bubbsy

Hey CP,

With the baby quickly growing and we needing more space, we decided to go out and buy a new home....

So initially i was intending on keeping my condo as a rental property after purchasing our home (possession date end of may). I renegotiated the financing of the condo to get some equity out to put it down towards my house. The person at the bank (TD) i was working with convinced me to go fixed seeing as i could control risk and the interest would be tax deductible.

Financially things were getting tight, and some circumstances changed so we decided to sell the condo (it is sold now, possession a week after i get possession of the home).

So now, as i'm locking into my my home mortgage, naturally TD is charging me about 5 grand (knocking off any additional fees ~$550 if i get the home mortgage with them) for getting out of the condo mortgage.

Am i stuck here, or is there any options to lower the blow (5k hit) ?

Any insights would be greatly appreciated (other than mocking my poor decisions leaving me in such a predicament)...

Your current mortgage probably has a prepayment clause. So if you could come up with eg 15% of the balance, even for a short time, you could knock that penalty down by 15%. Not a total solution, but every little bit helps.