Personal Finance

Scotia mortgage prepayment question

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  • Mar 9th, 2015 7:26 pm
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[OP]
Member
Jan 5, 2013
283 posts
45 upvotes
Kitchener

Scotia mortgage prepayment question

I am about to renew my mortgage with Scotia and I have a question about prepayments.

Let's say that my new mortgage will be effective April 1, 2015. When can I make a one time prepayment or increase my payments? Is there a wait period or I can just go ahead and do it next day, on April 2? This is very important detail to me so if anyone knows how this works I would appreciate their help. Thank you.
4 replies
Jr. Member
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Dec 6, 2008
113 posts
34 upvotes
Canada
Quick answer is that it depends on the precise terms of your mortgage/disclosure documents from BNS. So look at those, and then ask your lender what the best arrangement is. Often they can explain how and when to make payments to minimize penalty payments. But seems to me the easiest thing to do, which doesn't depend on the terms of your mortgage, is to simply make your payment on the expiry of your term, and then have the new mortgage be a smaller amount, after payment of your balloon payment. Ask you lender how you can do this. Because of course no limits on how much you can pay then.
[OP]
Member
Jan 5, 2013
283 posts
45 upvotes
Kitchener
Little more detail about the situation. What I want to do is with the new mortgage I want to lower my bi-weekly payment by 15% and increase my principle by 15%. Doing this will allow me to qualify for 5 year amortization at P-0.6. If I don't do this I can only get 3 year amortization with higher interest. So, the extra 15% that I would increase my principle I would take in cash let's say to purchase a car. But what I would really like to do is make a 15% prepayment and increase my bi-weekly payments ASAP to get my outstanding balance to the current level. I know that I can do 15%+15% prepayment annually with the product I'm getting, I just don't know when I can start exercising my prepayment privileges.
Deal Addict
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Dec 8, 2010
2418 posts
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You're asking purely from an administrative point of view? I know I changed ours twice very soon after the mortgage going into effect, there is certainly no "you must wait 90 days" or anything. There might just be a few days of admin "getting everything clean on the system" before it allows you to do it.. but if you walk into the branch I'm 99% sure you'd be able to do it immediately.
[OP]
Member
Jan 5, 2013
283 posts
45 upvotes
Kitchener
daverobev wrote:
Mar 9th, 2015 7:25 pm
You're asking purely from an administrative point of view? I know I changed ours twice very soon after the mortgage going into effect, there is certainly no "you must wait 90 days" or anything. There might just be a few days of admin "getting everything clean on the system" before it allows you to do it.. but if you walk into the branch I'm 99% sure you'd be able to do it immediately.
Yes, that's exactly what I am asking about. Thank you. Can anyone else confirm if daverobev is right.

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