Real Estate

Mortgage transfer question

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  • Apr 14th, 2016 10:16 pm
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[OP]
Newbie
Jul 4, 2008
90 posts
11 upvotes
Mississasuga, ON

Mortgage transfer question

I have a mortgage transfer question.

I recently moved mortgage from TD to Scotia (After my current mortgage term with TD was over).
TD charged some $400 as mortgage discharge fee, that Scotia absorbed, but then Scotia charged a mortgage (and LOC) setup fee of about $590. Apparently it includes legal fees etc.

My question is - is this normal or did I get screwed?

I didn't do this through an independent broker but through a Scotiabank "Mobile Mortgage Specialist"
4 replies
Deal Fanatic
User avatar
Sep 13, 2011
5761 posts
2583 upvotes
Toronto
sanjeevnuts wrote: I have a mortgage transfer question.

I recently moved mortgage from TD to Scotia (After my current mortgage term with TD was over).
TD charged some $400 as mortgage discharge fee, that Scotia absorbed, but then Scotia charged a mortgage (and LOC) setup fee of about $590. Apparently it includes legal fees etc.

My question is - is this normal or did I get screwed?

I didn't do this through an independent broker but through a Scotiabank "Mobile Mortgage Specialist"
This is normal for two reasons:

1) You were getting a HELOC with Scotia (if i'm understanding correctly) which cannot be done as a traditional switch, so it needs to be treated as a refinance. Therefore, legal fees.

2) Even if you didn't get a mortgage with a HELOC attached to it, these fees would STILL be apply simply because you are with TD, who registers ALL their mortgages as collateral. Meaning, they cannot be transferred. The fee would still apply.


When did you get this new mortgage with Scotia? There is a promotion on right now available through mortgage brokers where you can get a 5 year fixed at 2.49% with all fees covered.... even when switching from a collateral mortgage.
Paul Meredith
Mortgage Broker, Author
CityCan Financial Corp.
(lic. 10532)
[OP]
Newbie
Jul 4, 2008
90 posts
11 upvotes
Mississasuga, ON
Hi Paul,

Thanks for the response. I signed the papers on the 9th of April and got 2.29% for 2 years, plus HELOC at prime.

That was the deal. They said they cannot discount it more, but instead they'd give me a HELOC at prime.
I guess the broker should have been more forthcoming with the refinance fee details.
What's your opinion? Fair deal?
Deal Fanatic
User avatar
Sep 13, 2011
5761 posts
2583 upvotes
Toronto
sanjeevnuts wrote: Hi Paul,

Thanks for the response. I signed the papers on the 9th of April and got 2.29% for 2 years, plus HELOC at prime.

That was the deal. They said they cannot discount it more, but instead they'd give me a HELOC at prime.
I guess the broker should have been more forthcoming with the refinance fee details.
What's your opinion? Fair deal?
Their program where they pay the legal costs is available only on 3 year terms and greater, so the 2 year term wouldn't have qualified anyway.

The HELOC at prime is a really good deal. But of course, if you don't use the HELOC, then whats the point. If you use it, then that can save you quite a bit right there. They could have got you 5 pts lower on the rate though.
Paul Meredith
Mortgage Broker, Author
CityCan Financial Corp.
(lic. 10532)
[OP]
Newbie
Jul 4, 2008
90 posts
11 upvotes
Mississasuga, ON
Thank you for your honest opinion. I do have plans for the HELOC (No, not spending but borrowing to invest. Working on a strategy).

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