Personal Finance

words of wisdom re: mortgage payment changes

  • Last Updated:
  • Dec 3rd, 2020 5:18 pm
[OP]
Newbie
Jun 24, 2009
22 posts
18 upvotes

words of wisdom re: mortgage payment changes

I wanted to share my negative experience with you folks when renewing my TD mortgage and hopefully help anyone avoid the headache I have been subject to over the last 6 months.

TLDR: Don't let the bank change your amortization period and Stay away from TD.

I was completing my mortgage renewal and had gone into the branch to finalize the paperwork. The rates had come down since I first entered into the mortgage. We settled on a 25 year amortization, weekly payment. Everything was almost finished when I noticed the weekly minimum mortgage payment was about $75 lower than it was previously, so I asked the Financial Advisor (FA) to increase the payment to what it was previously. I had done this previously online very easily.

She goes, 'no problem, we can just change your amortization period from 25 to 20 years' and presto, the weekly payment was now about the same as it was prior to renewal. She produces new paperwork and I sign. All done.

One day later, it occurs to me, with this reduced amortization period, does that mean I cannot decrease the payment in the future? In the past, I had increased and decreased the weekly mortgage payment online. I phoned the FA to check.

They confirmed that with the 20 year amortization period, I could not reduce the payment.
Get out of town. This was absolutely ridiculous. I no longer had the flexibility of reducing the payment and in order to change it, I would have to break the mortgage.

I have now been embroiled with their Ombudsman Office and am still awaiting a positive outcome.
I am not happy and after 30 years as a TD customer, I am actively exploring moving my mortgage and investments out of TD in the near future.

Stay away from TD
8 replies
Deal Addict
Sep 21, 2011
1793 posts
505 upvotes
Do they have a 30 day cooling period for mortgage renewals ? Should be those slimy bankers try all sorts of shit to get you to sign
Jr. Member
Dec 5, 2017
195 posts
154 upvotes
Correct. You should have let the lower payment go thru (if that's what you wanted), and then change your payments online/phone/etc once the mortgage started.
[OP]
Newbie
Jun 24, 2009
22 posts
18 upvotes
Spiritwalker2222 wrote: Correct. You should have let the lower payment go thru (if that's what you wanted), and then change your payments online/phone/etc once the mortgage started.
Yes, this is my advice for everyone.
Still, just insane that they wont amend it, 24hrs later.
[OP]
Newbie
Jun 24, 2009
22 posts
18 upvotes
shawn01 wrote: Do they have a 30 day cooling period for mortgage renewals ? Should be those slimy bankers try all sorts of shit to get you to sign
Do you mean I should switch FIs?
I am actively exploring
Deal Addict
Jul 8, 2013
1706 posts
2143 upvotes
Red Deer, AB
aktionmancer wrote: Do you mean I should switch FIs?
I am actively exploring
Sorry to hear about your experience. But you done mess up. In other words: you signed the contract and it's now binding. The onus falls on the Financial Advisor to properly explain, but good luck fighting that.

Keep us posted.
TFSA: XAW | RRSP: VEQT + VAB | Non-Reg: Dividend-paying individual stocks (tax purposes)
Deal Addict
Jan 15, 2017
3950 posts
3415 upvotes
Unfortunately, the Financial Advisor did offer the option of lowering the amortization period to increase the payment and the OP was okay with that.

The question is whether the OP explained to the FA that in the past he had increased and decreased the payment on line as needed and really liked that feature and that he wanted to continue to enjoy that feature in the future.
Newbie
Nov 5, 2013
21 posts
10 upvotes
I have a small mortgage with a smallish bi weekly payment that I'm comfortable with.
Once you signed your mortgage, the amortization cannot be changed without re mortgaging.
What I do is I make extra payments up to a yearly maximum of 12.5% of your original mortgage. There is no penalty and best of all 100% of these payments go to reduce your principal, no interest at all.
you can also increase your regular payments but you cannot decrease them once they have been increased.
So far I shaved 3 years off my 20 year amortization just by making extra payments.
Deal Fanatic
Apr 11, 2006
8987 posts
3340 upvotes
Mississauga
OP is to blame here.

They literally did not hide the fact that they would change the amortization period to accomplish what was asked.

If you didn't further explain exactly what you wanted, then you can't expect them to read your mind.

if you tell anyone you want higher payments, the quickest way is to shorten the amortization to the next threshold, and if that resulting payment amount is okay, then that's that. If you don't further say, but you would like the flexibility to lower payments back, then how will people know.

But let's just take a step back here for a second. Normally, you can change your payment amount once a year if I'm not mistaken. So in five years time, how much increasing and decreasing of payments did you expect to be able to do.

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