Real Estate

Help im in a 3.44 with envision and need out!

  • Last Updated:
  • Jul 11th, 2021 6:12 pm
Tags:
[OP]
Newbie
Dec 8, 2020
92 posts
18 upvotes

Is my penalty correct?? I want out!

I got a copy of the b&e and I don’t understand it. I guess I will have to get a lawyer to look at it to know what my penalty is if I do that tricky real estate move.

Meanwhile I decided to inquire on what the break would be. It doesn’t make any sense the rates have gone higher and yet my break is now 13,000! About seven months ago it was only 10,000..

Are they pulling a fast one?
Images
  • 39DE27A8-385E-472D-AE17-7CF30AF6F689.jpeg
25 replies
Deal Addict
Jun 26, 2019
1420 posts
1145 upvotes
GTA
If you port your mortgage and blend it for a new house/mortgage you likely don't have to pay anything.

That said, if you are going to break it, the terms are usually:

1) 3 Months Interest.
2) Calculated based on the interest rate differential.

In almost all cases #2 will govern, and yes it is expensive, so those numbers don't surprise me.

If rates have decreased in the past seven months, then your IRD would go up, because they can't lend that same money out for as much now, so you're on the hook for it.
Member
Apr 7, 2012
413 posts
265 upvotes
Brampton
the break fee of 13k with the rates quoted are correct, as for why it was 10k 7 months ago, werent the rates higher back then compared to now, thus the IRD would have been lower.
Deal Addict
Jun 18, 2020
1008 posts
888 upvotes
It's possible, since 7 months ago you would be compared to a 3 yr posted rate.

Dont pay 14k to Blend. If you are able to currently qualify, and want out that bad, pay 13k and walk to another lender.

Some lenders are treating the move into a Blend as a break, sounds like yours is one.
Newbie
Oct 28, 2019
85 posts
98 upvotes
navyblue wrote: the break fee of 13k with the rates quoted are correct, as for why it was 10k 7 months ago, werent the rates higher back then compared to now, thus the IRD would have been lower.
The key component: Time. 7 Months ago they were closer to (hypothetically) 5 years than they were 4. Now they're closer to 4, so they are measuring against a different posted rate, thereby increasing the differential.
Deal Guru
Feb 22, 2011
10697 posts
13415 upvotes
Toronto
Why do you want to break though are you sure you need to?
[OP]
Newbie
Dec 8, 2020
92 posts
18 upvotes
I need steps to get out of this. Im probably the only one left paying this rate. Were 3 into a 5 fixed. We have a heloc of 38,000.
Images
  • 38EFBD5A-6DEF-47C5-8C02-A8D2E884679B.jpeg
Jr. Member
Jul 10, 2020
162 posts
201 upvotes
Wait 2 years and renew at 1%
RFD is hurting my wallet, too many good deals *link removed - advertising is not permitted*
Deal Addict
Jun 18, 2020
1008 posts
888 upvotes
Did they decline a blend and extend?
Deal Addict
Mar 22, 2010
3050 posts
913 upvotes
Can you make lump sum pre-payment? This could substantially lower your break penalty. Your first point of contact should be your mortgage broker. If making a lump sum pre-payment is not an option, then you can turn to a blend and extend as others mentioned. Be advised that B&E, you are extending your contract another 5 years potentially subject another hefty penalty should you decide to break the mortgage prior to that 5th year mark.
[OP]
Newbie
Dec 8, 2020
92 posts
18 upvotes
Doing a blend and extend would only get me a 2.9. No thanks. My bank is not being helpful.
Deal Guru
User avatar
Mar 23, 2008
12670 posts
9283 upvotes
Edmonton
Dejavudiva wrote: Doing a blend and extend would only get me a 2.9. No thanks. My bank is not being helpful.
Of course they’re not being helpful. You signed a contract with them, with the terms and conditions identified. If you want to break that contract, there’s penalties for doing so (also identified in the contract). So you can either keep the mortgage, or pay the penalties. Your choice. There’s no magic “get out of jail free” card.

C
Newbie
Apr 8, 2021
28 posts
20 upvotes
It could be worse - I have seen much higher IRD penalties! Count yourself lucky and move on.
[OP]
Newbie
Dec 8, 2020
92 posts
18 upvotes
Wow…
Nice lashback.
Everyone else on here there is assistance to get help to get the lower historical rates. Im told to suck it up basically?
I guess envision employers are on here too…
Either that or really disgruntled renters.
Deal Addict
Jun 18, 2020
1008 posts
888 upvotes
Dejavudiva wrote: Wow…
Nice lashback.
Everyone else on here there is assistance to get help to get the lower historical rates. Im told to suck it up basically?
I guess envision employers are on here too…
Either that or really disgruntled renters.
It's not about being disgruntled or knocking you. It's a tight situation. These are never easy to get out of.

Did you read the big thread on doing exactly what you're trying to do? Go thru it, many have hit roadblocks, some have made it work. But you might be late, Scotia was slow to close the loophole but seems they have.

Your best bet is read it thru, and pressure them using the info you find. Being bitter here isn't helping you get your costs down. No one cares if you're ticked about your rate, whether RFD users are owners, renters, basement dwellers at moms...it's not our $ going to Scotia, it's yours.

FWIW, you'll see my username on that thread a lot. I've tried to help along the way on this issue. And sadly, I'm stuck at a rate as high as yours myself, so I know your pain.
[OP]
Newbie
Dec 8, 2020
92 posts
18 upvotes
Thank you. Im not bitter. Just sad. People are not as kind these days. I really do appreciate your kind response. I have a small settlement coming. I may use it to get out as its about 10,000 penalty. It is what it is. 🦋
Deal Guru
User avatar
Mar 23, 2008
12670 posts
9283 upvotes
Edmonton
Dejavudiva wrote: Thank you. Im not bitter. Just sad. People are not as kind these days. I really do appreciate your kind response. I have a small settlement coming. I may use it to get out as its about 10,000 penalty. It is what it is. 🦋
It’s not a matter of being an employee of theirs, or a renter (of which I am neither) or even being kind. The fact is that you signed a contract, and they’re not under any obligation to release you from what you committed to. If you don’t like that, don’t sign a 5 year mortgage.

C
Deal Addict
Nov 23, 2003
2066 posts
537 upvotes
Had the rates went up, would you accept the bank changing your fixed rate to a higher rate? No, right. Similarly, why should bank give you a lower rate when you are not willing to pay a $10000 penalty? It’s not a lot of penalty. I have seen bigger penalties $30000 plus. I just paid $7000 in January to change my fixed rate to variable mid term.

Top