"WE'RE ALL DOING IT": Lies and Deception the BIG 5 Banks Train Their Employees to TELL YOU.
These are three of the most common fibs I've been exposed to around mortgages:
http://www.cbc.ca/news/business/banks-upselling-go-public-1.4023575
1. "Mortgage insurance is required to get the mortgage".
This is false; It's not required at all and is generally way more expensive than broker quoted insurance if you actually need it.
Get quotes on line at; http://www.lowestrates.ca/insurance/home
Check your existing insurances, you may already have the same coverage.
2. "Our mortgages only have 3 month interest penalty break fees"
This is false; Fixed rate Mortgages typically have HUGE interest rate differential penalties.
For a quick overview of Break fees by Bank and Mortgage type click here; https://www.ratehub.ca/penalty-calculator
Remember to read the break fee terms before you sign.
3. "We can easily transfer your mortgage to another property"
This is false; Most of the time you have to re-qualify for the transfer.
Again find the Transfer Terms in your mortgage and ask them to change the terms to; "Transfer without re-qualification".
Lesson here is, if you don't like any specific terms, ask for them to be changed, sometimes it works,,,
Some great advise from the Mortgage Pro's at Robert Klein Mortgage Group regarding the above three deceptions:
1. BANK Mortgage insurance is crap. Get it just to bridge over while you apply for a term policy direct from an insurance company. Once approved cancel the BANK's mortgage insurance.
2. Use a NON BIG BANK lender with cheap interest rate differential penalties or go variable as its typically just a 3 month interest penalty. Avoid all big bank fixed rate mortgages like the plague.
3. Generally Banks want you to re-qualify to transfer a Mortgage to another property so don't sell your property until you're approved for you're new mortgage.