Real Estate

Appraisal fee

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  • Apr 27th, 2022 8:47 pm
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[OP]
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Feb 6, 2014
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Appraisal fee

My mortgage is up for renewal. Applied for mortgage at few banks. Banks are doing appraisal and most are covering appraisal cost and legal fees upon transfer.

Of course, I would need to transfer my mortgage to one bank. What happens to appraisal fee paid by other banks? Any instance of banks asking mortgage applicants to pay appraisal fee if applicant does not go with that bank?
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Deal Addict
Jul 3, 2007
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for transfers, lenders will cover legal and appraisal
[OP]
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Feb 6, 2014
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joepipe wrote: for transfers, lenders will cover legal and appraisal
Yes - however, if I dont close then their appraisal goes waste. Do they levy it on the customer ?
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Jan 15, 2017
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They may. How many banks are completing appraisals?
[OP]
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skeet50 wrote: They may. How many banks are completing appraisals?
2 banks. I'll go with the one with lowest rate.
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Mar 23, 2011
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ambujakshi wrote: 2 banks. I'll go with the one with lowest rate.
Why don't you just negotiate the rates first, they aren't going to be astronomically different and then that bank will do the appraisal.
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[OP]
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sherman51 wrote: Why don't you just negotiate the rates first, they aren't going to be astronomically different and then that bank will do the appraisal.
I want banks to compete and give me lower rates. That's what I did when I bought the home. Ended up lowering initial interest rate of 2.19 to 1.99. 0.2% makes a difference in 5 years.

Edit: I never signed anything with either banks, not even an application. Just sent all all documents(bank statements, pay slip, noa etc) through email.
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What bank are you currently with? Many banks have collateral charge mortgages and it may be more costly for you to switch to another bank on renewal.

What type of appraisal are the banks doing? Is it a full appraisal, which costs more, or automated, which costs less?
[OP]
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Feb 6, 2014
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skeet50 wrote: What bank are you currently with? Many banks have collateral charge mortgages and it may be more costly for you to switch to another bank on renewal.

What type of appraisal are the banks doing? Is it a full appraisal, which costs more, or automated, which costs less?
With Scotia right now. 2 year term is coming to an end. They are offering 2.9% variable / 3.5% fixed for 5 years. But TD is offering 2.45 % variable. Cibc is offering 2.39% variable. Leaning towards cibc as their rate is lower and TD is sneaky with their different mortgage (3.6%) and regular prime rate (3.45%).
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ambujakshi wrote: With Scotia right now. 2 year term is coming to an end. They are offering 2.9% variable / 3.5% fixed for 5 years. But TD is offering 2.45 % variable. Cibc is offering 2.39% variable. Leaning towards cibc as their rate is lower and TD is sneaky with their different mortgage (3.6%) and regular prime rate (3.45%).
Scotia has both standard charges and collateral charges. If you have a Scotia Total Equity Plan (STEP), then it is a collateral charge.

TD will register the new mortgage as a collateral charge. This means that when it comes time to renew, it will cost you fees to switch lenders. This may not be a good choice if you want to continue negotiating with different lenders at renewal.

CIBC has both standard and collateral charges, depending on the product. More on CIBC's products can be found at this link: https://www.cibc.com/content/dam/person ... ges-en.pdf

Wanting lenders to compete for your business is a great tool, but having to pay extra fees to get out of a mortgage increases your overall costs and therefore, your overall rate. Make sure that you know what it may cost to get out of the mortgage and include it in your overall costs. Sometimes, the lower rate on a collateral charge can end up costing you more when you want to switch.
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Feb 2, 2014
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ambujakshi wrote: My mortgage is up for renewal. Applied for mortgage at few banks. Banks are doing appraisal and most are covering appraisal cost and legal fees upon transfer.

Of course, I would need to transfer my mortgage to one bank. What happens to appraisal fee paid by other banks? Any instance of banks asking mortgage applicants to pay appraisal fee if applicant does not go with that bank?
They may.

Best mortgage rate is 2.16% 5-year variable via brokers.

You should be able to get 2.45% 5-year variable with Scotia.

TD is a collateral charge lender...avoid them.
Kevin Somnauth, CFA
Principal Broker/Owner - First Toronto Mortgage - MA (Ontario #13176, BC #X301007)
Real Estate Salesperson - Century 21 Innovative
[OP]
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CdnRealEstateGuy wrote: They may.

Best mortgage rate is 2.16% 5-year variable via brokers.

You should be able to get 2.45% 5-year variable with Scotia.

TD is a collateral charge lender...avoid them.
Both banks said legal fees and appraisal will be covered by the bank and I didn't sign anything that said it will be charged if I dont close.

I currently have the Scotia STEP (total equity plan). I guess it is collateral.
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Penalty Box
Dec 27, 2013
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CdnRealEstateGuy wrote:

You should be able to get 2.45% 5-year variable with Scotia.
not on a renewal for a RFD member looking to renew a $100,000 mortgage that thinks he's the CEO. Lets be real.
[OP]
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How do I know if my current mortgage is collateral? My step total amount is the amount I borrowed in mortgage and not the total value of my property. I checked my property documents from lawyer. One page states that I agree to standard charge terms.
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ambujakshi wrote: How do I know if my current mortgage is collateral? My step total amount is the amount I borrowed in mortgage and not the total value of my property. I checked my property documents from lawyer. One page states that I agree to standard charge terms.
A Scotia STEP is a collateral charge. When you are discussing your mortgage options with other banks, make sure that you are clear that you have a collateral charge. It makes a difference. You can only "Switch" from one lender to another if you have a conventional charge.

One reason that Scotia may be offering a higher rate right now on renewal is because it knows that it is going to cost you additional legal fees to take your mortgage to another lender. People are less motivated to move their mortgage when they discover they have to pay fees to do so.
Penalty Box
Dec 27, 2013
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skeet50 wrote: A Scotia STEP is a collateral charge. When you are discussing your mortgage options with other banks, make sure that you are clear that you have a collateral charge. It makes a difference. You can only "Switch" from one lender to another if you have a conventional charge.

One reason that Scotia may be offering a higher rate right now on renewal is because it knows that it is going to cost you additional legal fees to take your mortgage to another lender. People are less motivated to move their mortgage when they discover they have to pay fees to do so.
but he is CEO of bank with $100,000 mortgage.
[OP]
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Feb 6, 2014
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skeet50 wrote: A Scotia STEP is a collateral charge. When you are discussing your mortgage options with other banks, make sure that you are clear that you have a collateral charge. It makes a difference. You can only "Switch" from one lender to another if you have a conventional charge.

One reason that Scotia may be offering a higher rate right now on renewal is because it knows that it is going to cost you additional legal fees to take your mortgage to another lender. People are less motivated to move their mortgage when they discover they have to pay fees to do so.
Other banks said they will cover the legal fees and appraisal fees. I already sent my mortgage statement to other banks - I'll call both tomorrow to confirm that they know that its collateral and they'd cover all legal fees.

Is legal fees only involved for collateral?

Also, is it possible to go for a conventional / standard charge mortgage when transferring mortgage to another bank (say CIBC)? Or I'm stuck with collateral for the lifetime ?
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ambujakshi wrote: Both banks said legal fees and appraisal will be covered by the bank and I didn't sign anything that said it will be charged if I dont close.

I currently have the Scotia STEP (total equity plan). I guess it is collateral.
This is a old but scotia told me electronic appraisal will cos 100 dollars every time. Is this normal now

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