mrthwap wrote: ↑May 16th, 2017 10:06 pmIf you ever had to break the mortgage, the IRD penalty with TD would be much higher than with a non-bank lender.
As it would with any big bank.
For me that's reason enough to stay away from the big banks for fixed rate products. If you're sure you won't break
the mortgage, then comparisons are easier.
We've been discussing this on here for years, yet so many people insist on going with a big bank for their mortgage. It's easy at the time of arranging your mortgage to think that you won't be breaking the mortgage for the term. Circumstances change, things happen, and life can throw you curveballs. There are many reasons why someone might break their mortgage early:
- purchasing a new home mid-term and bank isn't giving you a competitive rate (probably most common)
- refinancing to a lower rate (new mortgage regulations will pretty much eliminate this from happening again).
- loss of job
- transfer out of city / province / country
- failed business venture
- personal financial crisis
The list can go on and on. Most of the items on the list are less than pleasant, but life isn't always pleasant and sometimes it throws curveballs. Especially with the size of mortgages today, going with a major bank for a fixed rate mortgage can end up being a costly choice.
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