Real Estate

Issues switch mortgage at renewal

  • Last Updated:
  • May 17th, 2019 4:04 pm
Jr. Member
Sep 14, 2008
149 posts

Issues switch mortgage at renewal

So I had recently tried to switch to another financial institution.

My original mortgage was up for renewal, and I wanted to do a lump sum payment once it became open. I was advised that the lump sum payment should be completed before switching to the new financial institution (FI).

So originally, I had mentioned this to both sides, and all was fine. Then a few days before it was to be come an open mortgage, the first FI said there wasn't enough time to process the lump sum payment, and so the initial FI said to asked the new FI to submit new papers pushing the date by 4 days. Of course, they claim they never received the revised date (?!) but then later on they found something that verifies the revised date and take out the lump sum payment a good 4 days after it's already become an open mortgage.

Now another 2 and a half weeks later the new FI is still waiting on the original FI to release it, but daily interest is accruing with an open term rate. Both sides say "don't worry about it" but neither side is willing to say what happens with this interest. It's been three weeks in total and obviously at a 7% open rate it's quite a bit. And there doesn't seem to be a clear date of when this will be resolved.

Any suggestions on what I should do? I don't understand why it's become so messy!

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