Hello Anon, breaking your mortgage with Home Trust means you will have to pay the mortgage out completely or move the mortgage to another lender called a switch. Home Trust has different guidelines for their different mortgage products. Some products do not allow you to break the mortgage unless you are selling your house. You may only be allowed to break without sale after a part f the mortgage term has expired. Please dig up the papers you signed with Home Trust back when you got the mortgage to confirm the options you have. If they do allow you to break the mortgage you may have to pay a penalty which can be as low as 3 months interest penalty or the often larger calculation of Interest Rate Differential. Even if you have to pay a penalty you often are able to realize a healthy savings when breaking a mortgage and moving it to a lower rate elsewhere. Please speak to a Licensed Mortgage Agent who can do the calculations for you. Unless you are getting a better rate elsewhere do not think of leaving Home Trust because that penalty should be avoided if possible. As for Bank of Montreal, and this goes for the big 5 banks in Canada, all are relatively equal in their products, rates and guidelines with varying differences at each level. The truth of the matter is that EVERY lender in Canada is a good choice as long as the interest rate is low and the details and conditions of the mortgage agreement are acceptable to you. After all once the deal closes the lender is just there taking your mortgage payment, they really do not do anything more for you during the life of your mortgage term other than that. The details and conditions I mentioned are the only things that may be important to you but as long as you reviewed them before signing for the mortgage you should have no problems taking advantage of things like pre-payment of your mortgage or changing your mortgage payment frequency. A Mortgage Agent is able to breakdown all of the features and conditions of the many mortgages products out there. They have access to multiple big banks and smaller lenders and can advise you of which lender has the features you want at the lowest available rates. I hope this helped. If you or any other reader would like some more info on this or any topic please do not hesitate to contact me at any time. Abraham Niyazi - Mortgage Agent - Lic#M08010640 - Centum One FInancial Corp - Lic 10758. Cell: 416-993-4082 Toll Free: 1-866-728-3708 x 115 www.centum.ca/abraham_niyazi/ I deal with 25 Lenders/Banks and can do mortgages across Canada except Quebec.

The mortgage can be moved to the new home or discharged with a penalty which applies to most of the mortgages. Breaking a mortgage can be very costly and you should look into the option of porting the mortgage to the new home. If the mortgage you required is higher then the current mortgage then you can apply for a blend mortgage.

Penalties vary between different lenders but I think its 3 month of mortgage payments to break a mortgage in most cases. You should ask your bank how much is the penalty to break the mortgage sooner.

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If i want to sell a house before my mortgage is up for renewal, approximately how much will the bank charge me to cancel the mortgage before my term is up? (canada if that helps)

You need to read your mortgage contract. If there is no penalty for early payoff, there will be no fees. When you sell a house, you don't really "cancel" the mortgage, you use the proceeds from the sale to pay off the mortgage. You get to keep the rest as profit. If you don't get enough from the sale to pay off the mortgage, you will need to continue making payments until it's paid off.

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When i closed on my house, the lender didn't require an escrow account, and i said that if they had no minimums that i would use the escrow. they then sold my mortgage to citimortgage. citimortgage promptly increased my payment into escrow so they would have at least $1000 buffer in the account. i'd like to get out of this escrow account, but keep the mortgage itself. the escrow account is only for real-estate taxes and insurance. new info. called citimortgage to see if i could cancel. here's what i would have to do: 1. have a positive balance in my escrow account. - have it. 2. have a good payment history. - good here. 3. have at most 75% loan to value. - problem 4. pay a fee of $514.90 to cancel the account. - talk about bs! lesson learned - when you have a choice to have an escrow account or not, always chose not to have one.

If you were not required to have it or are under 80% Loan to Value then you should be able to cancel . Contact Citi and tell them you want to cancel and get their procedure.

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Dealing with a shady loan company here, my loan was sold to them. there are asking for $944 a month in escrow payments, partly to satisfy a buffer they say i need. in any case, i wanted to cancel the escrow and make the tax payments myself. what would prevent me from cancelling this escrow? forgot to mention that i did and 80/20 loan when i bought the house, 20% of the loan belongs to another lender. so as far as the company with the escrow is concerned, the 80% requirement is satisfied, right? or is there some way they know about the 20% loan?

The first mortgage holder is only required to establish an escrow account if their loan to value is in excess of 80%. You may cancel the escrow account at will. At closing you paid a "Tax Service Fee". This is the company who will monitor the property tax payments you make from now on to assure the lender that you are paying them and so not endangering their lien position with unpaid taxes which take priority over their lien.

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Here's our situation. we need to get out of our current house and into one we can both afford and fit into. if it sold today, it would likely pay off the first mortgage, or very very close. but we have a second mortgage that there's no way it'll pay off. the second is with citimortgage (who hasn't been exceedingly helpful at this point), and i've asked them to convert it to a unsecured loan os we can sell and get into a house we can afford, and they weren't sure (well the folks on the phone weren't sure) if they could do that. i pointed out to them that currently, they hold zero equity in this house, and if we couldn't make the payments, they would get zero in foreclosure. same situation in bankruptcy. the thing is, we don't want to just cancel out their portion of the loan, we are willing to pay it back, but just can't do it right this moment. foreclosure and bankruptcy aren't an option, nor is doing what a lot of americans are doing and just walking away from a loan we signed for. unlike most americans today, we have a little more character than just walking away from a house unless we are literally faced to choose between feeding the kids and paying the second mortgage. that being said, do you have any ideas how to get them to convert the second mortgage into an unsecured loan at the same terms? it already is an unsecured loan, because they have no equity. once this is done, and the lien is released, we can sell, pay off the first, and get into a house we can afford and fit into. i'm in contact with them, though even the folks in their loss mitigation department didn't think that it could be done, but we'll find out. i hear some folks have had success personally contacting the managers and executives involved, giving them a *brief* overview, and asking them if they could help get it resolved. one thing i'll note is, these folks probably used to do things like this from time to time, or at least used to work somewhere where they were involved in the dirty day-to-day duties, and they like to feel like they're still able to make wise decisions in cases like this. i should add also, i'm willing to have them attach a lien to the new house if they want also, if that's possible. though there won't be any equity to do that.

Contact the "loss mitigation" or "workout" department of your 2nd TD lender. Normally they will do this only when you sell your home. Lenders don't usually like to deal with these matters until you have a buyer ready to buy your home at a price lower then you owe on the 1st and 2nd....otherwords a "short sale". List your property with a Realtor that has plenty of success doing short sales. I've often seen 2nd TD lenders take back an unsecured note and release their lien on the 2nd when their 2nd is basically worthless. They will investigate to see if what your are telling them is true about the declined value of your home. The process often takes several months. Also have them agree not to report anything negative against your credit rating, especially if you will be trying to purchase another home in the next five years.

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The reason i have no life insurance is because ive been refused it several times because im a diabetic who smokes,i had insurance when i 1st got a mortgage 10 years ago but had to cancel it as it was tied in with an endowment policy which wasnr going to pay off my mortgage and now i have a repayment 1, ive got about £40000 left to pay on this and 15 years to pay it and my house is worth about 200000 but is too small for my family of 6, we want to move to a bigger house and would have to take out about a 50000 increase to get it, will the bank prevent me from doing this or would they not even know that ive no life insurance, all i have is home + contents insurance. do any of you work in a bank or have any knowledge about this? thanks for any advice you can offer.

Hello Sean. Unless there are some laws in Ireland to control this, which would seem pretty weird, my advice would be to just go ahead and try. As far as where i live is concerned, the ONLY kind of insurance the mortgage folk are interested in, is buildings & contents. In the event of your demise, your mortgage payments would be maintained by your partner so the bank would be not worried about that. In that worst case scenario, your partner would just re-mortgage your 200k house, release some of the profit you have made over the years, get a much smaller mortgage or even loan to cover the 40k left and carry on living there. This option is much better than the RIP OFF specialist insurances whose premiums will kill you, even if the smokes dont ! Top of the morning to you ! p.s. If you live in Northern Ireland, i am certain of my facts, if you live in the South, i can`t be certain. :)

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My now x partner agreed to have my name put on the mortgage and we are still going through the final process of having this done. however since we have broke up he has started to make living with him impossible. i dont wanna walk away and cancel going on the deeds as i am entitleted to any profit made from when we do sell, plus would have to cover full solicitors costs anyway. if i want to sell as soon as the mortgage and deeds are complete can i do this? were signing up to it 50/50

It depends on the type of mortgage you have signed up to. Consult your solicitor.

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I know it is a fraud. but... since the homeowners have to sell the house... if i owed the bank $300,000, but i am selling the house for $100,000. and if i sell it to myself.... and get someone to get a new mortgage bank and just owe them $100,000. and i can just tell the previous bank that i sold the house and can i cancelled the bank mortgage? i don't understand myself... how bank and mortgage work?

your bank probably won't accept 100k as settlement in full if you owe them 300k. besides that, you and your friend would be on the IRS's bad side, which is not advisable.

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I closed with a mortgage broker. and they paid off old loan and are about to sell loan to another bank. any jeapardy of something falling through or is it a done deal because i've already closed? thanks everyone. making payments is not a problem, just worried about loan going through. thank you all for your answers.

The transaction has closed. The bank will not cancel your mortgage at this time. The title and deed have been recorded and you have the refinance funds in your possession. You are required to pay the monthly mortgage payment each month. Your mortgage contract you signed did not say pay only if you have a job. Your first mortgage payment should be due in about 15 days or so. Failure on your part to make the monthly mortgage payment will cause your bank/lender to eventually foreclose on your home. You should call you lender and explain the situation to them and see if there is a program that they can assist you in some way. You would want to talk to someone in the modification or workout department. Make sure you get by the receptionist and to the proper person in one of the departments. I hope this has been of some use to you, good luck. "FIGHT ON"

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Okay, i'd like to keep my high credit score though i've recently bailed out of the corporate world to work more meaningful paying little. i've paid off 2 credit cards with very small balances. two other cards with low aprs i'm working down, but i could pay them off in total. what's the best way to keep a high credit score with an unstable income but an excellent credit history? the main reason i care is i own a house and i may sell to downsize, and thus might need to qualify for a mortgage again. no car payments. does paying off all cards and/or canceling them throw up red flags? thanks to all you smart folks who understand all this stuff a lot better than i do.

it doesn't hurt your score to pay balances off...in fact it looks good to other creditors if you do...but it does hurt if you pay them off and then close the account...it you have the means to pay off your balances in full, then do it but keep the account open but with a balance of $0.00...basicly, just don't use the cards again...some credit companies have a "inactive fee". if your credit card company uses this scam, then use the card for something very small with the intention of paying it off each month. hope this helps