Does anyone know if they have a standard % charge on full payout?
Also do you know if you can you convert their Mortgage to a Heloc, which then could be paid out with no penalty?
Thanks.
Does anyone know if they have a standard % charge on full payout?
Also do you know if you can you convert their Mortgage to a Heloc, which then could be paid out with no penalty?
Thanks.
Pre-payment penalties are never "standard".
You will need to talk to your bank.
If you have enough equity in your home, when your mortgage term is up, you can definitely get a Heloc instead of conventional mortgage. They aren't going to let you just convert it mid-term though (without penalty).Originally posted by jonnycat
Also do you know if you can you convert their Mortgage to a Heloc, which then could be paid out with no penalty?
I've been considering getting a HELOC when my mortgage is around $100g. If rates are still decent, I figure I can make more money paying only the interest on $100g (call it "rent"), and investing the rest of what would have been my monthly payment, then just paying the mortgage like normal.
Yea I just convert to HELOC and then MAX it out to BUY things.
I am user #49Originally posted by rage2
Shit, there's only 49 users here, I doubt we'll even break 100
Scotia is 3 months interest or Interest Rate Differential, whichever is higher.
Original Post NAZI Moderated
Originally posted by r3cc0s
Felon or Mistermeiner
Just waiting on call back, but was hoping to have some ammo lined up for negotiations. Thanks.Originally posted by sputnik
Pre-payment penalties are never "standard".
You will need to talk to your bank.
I'm one year in to a 5 year fixed. May need to wait depending on penalty size.Originally posted by Tik-Tok
If you have enough equity in your home, when your mortgage term is up, you can definitely get a Heloc instead of conventional mortgage. They aren't going to let you just convert it mid-term though (without penalty).
I've been considering getting a HELOC when my mortgage is around $100g. If rates are still decent, I figure I can make more money paying only the interest on $100g (call it "rent", and investing the rest of what would have been my monthly payment, then just paying the mortgage like normal.
Definetly. gonna buy a Vette or GTr or 911 asap!Originally posted by max_boost
Yea I just convert to HELOC and then MAX it out to BUY things.
i kid, lol
Winning formula right here!!!Originally posted by max_boost
Yea I just convert to HELOC and then MAX it out to BUY things.
"Masked Bandit is a gateway drug for frugal spending." - Unknown303
Penalty will be pretty big.Originally posted by jonnycat
I'm one year in to a 5 year fixed. May need to wait depending on penalty size.
Basically, you have to pay all the interest that you would have paid over the 5 years.
The bank still has to pay the bond holder of your mortgage.
My Tesla referral link: https://ts.la/moon14483
Tesla new owner FAQ: https://forums.beyond.ca/threads/411...37#post4928237
Nope. The winning formula is to find a rich sugar-momma, and max HER heloc out, lol.Originally posted by Masked Bandit
Winning formula right here!!!
$1425.00 DoableOriginally posted by Weapon_R
Scotia is 3 months interest or Interest Rate Differential, whichever is higher.
$27,000. Not doable. Fuck I hope you are wrong. $1425 would be so much better. My last mortgage I believe was $6000 penalty with ING Direct, on a higher mortgage with a higher rate.Originally posted by benyl
Penalty will be pretty big.
Basically, you have to pay all the interest that you would have paid over the 5 years.
The bank still has to pay the bond holder of your mortgage.
How on earth do you come up with that? Interest differential will be WAY more than 3 months interest. Unless you paid posted rates when you renewed.Originally posted by jonnycat
$1425.00 Doable
Did you do the calculations?
http://www.canadianmortgagetrends.co...ntial-ird.html
I just inquired about this with our bank and the payout was around $2500... we're 2 years into a $325K, 5 year mortgage
I had to pay over $9k penalty and I only had a year remaining on my mortgage with TD. I resigned with them so I was reimbursed, but still sucks.
doesn't it depend on what type of mortgage is issued?
For example variable is just 3 months interest, while a fixed is interest differential?
Honestly, once you get the phone call that will be your best answer. And don't ask them if it will be EXPENSIVE to buy out, ask them how much.
My parents were going to pay of their house, and the bank told them it is expensive to pay it out, turns out in the end it would have only cost them 2-3 grand versus paying another years worth of interest payments.
so if you don't ask you will not know.
The IRD calculation Scotia does not release, but here is the general calculation by the major banks:
Balance remaining x (Contract rate - (new rate for term remaining - original discount off posted rate)) x term remaining
Example:
$250,000 mortgage
5.09% 5 year rate
2 years remaining
New rate 3.09% (current 2 year)
Original discount off prime 0.75% (usually between 0.75-1.75%)
IRD =
250,000 x (5.09 - (3.09*-.075)) x 2
= 250,000 x (1.25%) x 2
= $6,250
3 month Int =
250000 x 5.09% / 4
= $3,181.25
Your penalty would be roughly $6,250
You will need to contact Scotia for the most accurate penalty, but this will give you a decent approximation should you know the original discount you received.
Cheers,
Todd
Since he still has 4 years left, you have to double your calc.
My Tesla referral link: https://ts.la/moon14483
Tesla new owner FAQ: https://forums.beyond.ca/threads/411...37#post4928237
I don't know what my original discount was. I used a broker who told me scotia's posted was 3.59%, so I entered 0% in the discount field. I filled out the chart like this;
$155,000 Balance
3.59% current
0% discount
45 months remaining
4.29% comparison rate
=$1400 3 mos interest or -$4000 IRD.
With a 1.75% discount it ups it to $6,100.
Over the last year posted has not changed much, so their 5 year posted would have been roughly 5.29% which would put your discount around 1.70%.
I highly recommend contact Scotia to get the true penalty number.
^^
They also tend to run the penalty calculation off of their floor discount rate which is at 3.19% for a 3 year term (as they look round down).
Good luck, and hopefully it works out!