Big Five In Your Pocket

Rip Off

Without overstating the obvious, as a Vancouver Realtor® my job is to help you with the process of buying or selling your Vancouver home. Part of that process, includes checking to make sure that you have all your financing in oder. What my services do not include is the calculation of the money it will cost you to acquire or change your mortgage – that function remains the domain of mortgage professionals.

What has triggered this post was a ‘heads up’ from Rob Carrick over at the Globe and Mail about a piece written by the Canada Mortgage News people who left me gob-smacked about the incredible rip off consumers face when contending with Mortgage Penalties.

Paying a Realtor® full commission for his services pales by comparison to this revelation.

Shocking Discovery

Courtesy Rhonda Porter

Ticklers:

  • “On November 26, 2010, we reported that a good source told us the govt would not follow through on their promise to standardize mortgage penalties until this spring, at the earliest.”
  • “On December 15, 2010, we also reported that discounted Fixed mortgage rates were going up but Posted mortgage rates were staying the same… we stated that your mortgage penalty would not decrease as it normally does when rates go up.”
  • “A $200,000 mortgage taken in December 2008 will cost you $16,800 to get out of today… but 12 years ago it would have cost you approximately $8,340 and even today, it should only cost $11,640.”
  • “We made a startling discovery… we caution you, the results could get your blood boiling if you had to pay a penalty in the past 2 years….We found that Banks have shrunk or reduced the spreads between their Posted and Discounted rates over the past few years….and this has had a huge impact on Interest Rate Differential (IRD) penalty calculations.”

If you think Mr. Potter was an SOB read the full post to see how deep the bank’s hands are in your pockets.

Seeking Answers

Rhonda Porter who hails from Seattle gives us a US version of mortgage penalties saying that “It’s your money, your assets, your home and your responsibility to make sure you understand.”

Back on this side of the 49th is another heads up. Today, I was told to expect a weekend post from my good friend Rob McLister over at Canadian Mortgage Trends, as he intends to dive deeper into the ‘Big Five’s money grab’.

With help in mind, consider this my New Year’s interest free gift to you gentle reader – know that it will cost you nothing and you won’t be penalized as you wait for McLister’s post. 🙂

About Larry Yatkowsky

Larry is a recognized real estate expert. A veteran professional, his experienced counsel leads Vancouverites in his west side community to place their trust in a man passionate about his work. Uncompromising ethics bring a balanced approach to realizing your real estate dreams.

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*Disclaimer: Statistics Courtesy REBGV. While believed to be accurate they are not guaranteed.
**Numbers provided may vary as they are dynamically posted by the REBGV.

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