Personal Finance

Need help - insurance / mortgage holder issue.

  • Last Updated:
  • Jul 11th, 2021 5:29 pm
[OP]
Deal Addict
Apr 7, 2011
2117 posts
726 upvotes
Hamilton

Need help - insurance / mortgage holder issue.

Applying for a HELOC and during the process is come up that my insurance on the house refers to the wrong bank. Specifically it's the bank that held the mortgage three mortgages ago.

The current bank I have the mortgage with won't go forward with the HELOC until I correct this. My insurance broker says I need to get the payout letter showing bank A was paid so they can update things.

My problem is that bank A was paid out seven years ago and they were completely useless. It'll take forever to get anything from them showing they were paid off (A-->B).

I can probably get something from bank B in a couple of days saying they were paid out (B-->C). But the insurance broker isn't sure that will work as it's still bank A on the insurance forms.

Anyone have a quick solution to break this log jam? I'm already peeved because the original application got messed up during a staffing handover. I've made some commitments assuming the original timelines so I need some speed.

tia
3 replies
Deal Fanatic
Feb 4, 2015
9583 posts
5909 upvotes
Canada, Eh!!
Do you have online access to Bank A... perhaps can show fully paid.

Some of the credit score sites [Mogo, Credit Karma, Borrowell, TransUnion, Equifax] do list mortgages past and present and whether active or closed. Not sure if that helps.

When Bank B got your business did they not pay out the balance to Bank A and then gave you balance remaining as mortgage?
2022/3: BOC raised 10 times and MCAP raised its prime next day.
2017,2018: BOC raised rates 5 times and MCAP raised its prime next day each time.
2020: BOC dropped rates 3 times and MCAP waited to drop its prime to include all 3 drops.
[OP]
Deal Addict
Apr 7, 2011
2117 posts
726 upvotes
Hamilton
georvu wrote:
When Bank B got your business did they not pay out the balance to Bank A and then gave you balance remaining as mortgage?
They did - it was a standard refinance. I'll chase them on Monday.
Newbie
Dec 17, 2014
82 posts
26 upvotes
Toronto, ON
The options are -
Check the documents you have received from your lawyer. One of them will show direction to the lawyer for paying the mortgage to Bank A. Also the statement (trust ledger) from the lawyer will show that the amount was paid to the bank A.

Option 2- cancel your home insurance from existing insurance company and set up home insurance elsewhere showing current mortgage company. The new insurance company will take your verbal instructions to add the current/correct mortgage bank. The insurance company will send the coverage confirmation to your current bank with correct mortgage information. You may incur mid term cancellation fee though.

Hope it helps!
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