Tuesday, October 6, 2009

Be Aware of Mortgage Penalties

Sometimes the deal is just too good....

Remember when people keep telling you to ALWAYS read the fine print? This is just such an example. Danny Kellman recently relayed a story about a mortgage client who did not read the fine print, sold their house based on a job transfer and then was shocked to find that the pay out penalty was 10's of thousand of dollars and not the three months interest that they were expecting.

Danny Kellman went on to say some mortgages carry a full payment of interest until renewal of term, so that in those cases 2 or 3 years of interest payments may be due as a penalty to the lender on discharge. Read your contract carefully is the advice!

Danny then directed my attention to a recent CBC video on this exact topic. This video is available here; http://www.cbc.ca/national/blog/video/consumer_watch/mortgage_contracts_the_
fine_pr.html and is from the Consumer Watch with Reporter Reg Sherren taking a closer look at the fine print on many mortgage contracts, and finding many Canadians don't realize how costly it can be to renegotiate.

Danny stressed the importance of having a Mortgage Specialist in your corner and reflected on the success of her group Mortgages 4 Women and their focus on an entirely female based clientelle. Danny remarked "with more women working in the financial district in downtown Toronto, we decided to relocate our offices to Bay Street to be closer to the clientelle we serve.

Be careful out there, as it was not the case for this particular situation but these clients signed a contract which allowed the bank to get their money. The issue was that the couple did not get professional advice before signing the contract. This types of advice is priceless as they could have saved thousands. Call Danny or Marcy for all your mortgage explanations or needs.

Danny D. Kellman, MBA, AMP, EPC [ddkellman@mortgages4women.ca] is a principal with
The Mortgage Diversity Group Their blog is Mortgages 4 Women, Toronto, Ontario. Danny Kellman and Marcy Berg concentrate their efforts on bring information and knowledge to the growing base of women only mortgage business.

Danny Kellman can be contacted at 300 - 40 Wynford Dr., Toronto, ON, M3C 1J5
Phone: 647-929-5346 Toll-free: 1-888-372-7367 ddkellman@mortgages4women.ca

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