Mortgage renewal fees

[Shojin]

Ok, I have a variable mortgage with BMO that is coming up for renewal next week. I've decided to put the mortgage into a Readiline and was told I'll need to have an appraisal done (which makes sense).

I got a breakdown of the fees to do all this today:

$70.70 for the e-registration fee
$125 for discharge of current mortgage (they are willing to absorb this - does this normally apply anyway if I'm not changing institutional lenders?)
$150 for the appraisal of the property
Plus any fees my lawyer charges me

This is my first mortgage renewal... am I getting ripped off? What if it were just a straight renewal (3-year open variable) not in a Readiline - would these fees then not apply?

I'm looking at about $400-$600 in fees at the end of the day!

[daisyville]

First, I'll say I don't know what a REadiline is, so I can't remark on that bit.

But, I have renewed mortgages. If your mortgage is due in a week, you have a responsibility to either give that lender the balance of the mortgage either through cash you have on hand, or through a cheque which would be written to the bank from another lender, if you decide to go with someone else.

I personally can't imagine a discharge fee for that. I've discharged a mortgage mid-term, and totally expected to pay a penalty - but I don't understand why they'd do that.

I don't quite understand what an e-registration fee is either.

Did you ask the bank those questions?

[sunnybono]

Ok, I have a variable mortgage with BMO that is coming up for renewal next week. I've decided to put the mortgage into a Readiline and was told I'll need to have an appraisal done (which makes sense).

I got a breakdown of the fees to do all this today:

$70.70 for the e-registration fee
$125 for discharge of current mortgage (they are willing to absorb this - does this normally apply anyway if I'm not changing institutional lenders?)
$150 for the appraisal of the property
Plus any fees my lawyer charges me

This is my first mortgage renewal... am I getting ripped off? What if it were just a straight renewal (3-year open variable) not in a Readiline - would these fees then not apply?

I'm looking at about $400-$600 in fees at the end of the day!

Most FI's, if you are staying with them will obsorb the discharge fees ($125). The $70.70 is a registration fee that the land registry office charges to either discharge a mtg or to place a mtg (standard) and thus its customary for the client to pay.
As for the appraisal fee and the new legal fee, I know that other FI's usually have their own internal legal depts who perform the same work as your own solicitor would, but usually at a slightly cheaper rate. In some cases, depending on your own branch and how desparate they are in retaining the business, depends on whether they will swallow the appraisal and legal fees.

Since you are in the renewal cycle, tell BMO that TD or BNS is offering free legal and appraisal fees and then see what they say!!!

Good Luck and let us know the results

sk

[Shojin]

Thanks for your replies.

ReadiLine is similar to Manulife's One product - it's basically a readvanceable secured line of credit, where the amount of credit available to you in the secured portion increases as you pay down the mortgage. The secured portion is anchored at prime (better than an unsecured LOC).

[ayeung]

If you simply just renewing your mortgage, then you shouldn't have a problem to have all those fees waived.

But since you're getting sth like a home equity LOC, that's when the fees kick in. Just like I did a bridging a while ago. The lawyer also charge me something just under $300 on top of the bank, which is also inavoidable

Banks usually can waive the mortgage discharge fee, but not the appraisal fees.

You may try to get them waive/reimburse you the e-registration fees.

[sunnybono]

Thanks for your replies.

ReadiLine is similar to Manulife's One product - it's basically a readvanceable secured line of credit, where the amount of credit available to you in the secured portion increases as you pay down the mortgage. The secured portion is anchored at prime (better than an unsecured LOC).

TD offers the same product!!!!!!!

sk