Hidden Mortgage Fess are making a Come Back.

It's never a good thing when banks are predicting their profits to slide - which is expected to happen in 2013. As Rob Carrick mentions in this article in the Globe, it usually means they're going to find other ways to ding customers - like through excessive mortgage breakage fees.

You've likely heard a few horror stories of friends or relatives who tried to get out of their mortgage early. Maybe they had to relocate temporarily, and opted to sell their home in favour of renting another. Or maybe they wanted to move to a larger home, and realized a little too late that the rock-bottom rate they were paying on their existing mortgage was low because it didn't include portability features. 

These stories don't usually end well - and often involve hefty interest rate differential fees (that compensate the bank for the money it would have made had you kept your mortgage through the agreed upon term) as well as a host of other fees, such as reinvestment fees, discharge fees and transfer fees. 
 
Before you ever sign on the dotted line of a mortgage, it's wise to inquire about what will happen should you opt to pay off that mortgage in full, move to a larger or smaller house or refinance down the road. If you already have a mortgage and didn't have your mortgage breakage fees explained to you upon signing, it's wise to look into it now. Just in case your future home ownership plans will require extra funds.

If you have any questions or are thinking about breaking your mortgage, don't hesitate to give us a call. We can explain the pros and cons of such a move in person, and help you minimize the damage.