Posted on: 28-03-12 09:57:10
I have a 5-year fixed mortgage with Firstline and am about to pay it off. Firstline informed me of a discharge fee of around $320 that will be charged at that time to transfer my title (ONT govt fees of $75; rest pocketed by Firstline).
I am just wondering if this is a standard practice among mortgage lenders. Is there a way to avoid paying this or paying a reduced amount?
Any help/advice is greatly appreciated.
Thanks,
Ash
Quote:
Originally posted by ash_canada
I have a 5-year fixed mortgage with Firstline and am about to pay it off. Firstline informed me of a discharge fee of around $320 that will be charged at that time to transfer my title (ONT govt fees of $75; rest pocketed by Firstline).
I am just wondering if this is a standard practice among mortgage lenders. Is there a way to avoid paying this or paying a reduced amount?
Any help/advice is greatly appreciated.
Thanks,
Ash
First of all congratulations on paying off your mortgage completely.
All banks / lenders charge this discharge fee when you are leaving them for good. Some may call it discharge fee and some may call it admin fee and others may call transfer fee but every lender in Ontario takes it. It could be any where between $200 to $300 depending on the lender.
In your case, Firstline could be charging $250 in admin fee and $70 plus in Government fee. However, is some one is switching the mortgage then some lenders may absorb this fee when some one switches the mortgage to them from their existing lender.
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Pramod Chopra
Senior Mortgage Consultant
Mortgage Alliance Company of Canada
Pramod,
Thanks for the reply. I don't see a mention of these fees in my original Mortgage contract or commitment that I signed in 2007. Just wondering if I can use this as a leverage to negotiate these fees lower ?
Ash
Quote:
Originally posted by ash_canada
Pramod,
Thanks for the reply. I don't see a mention of these fees in my original Mortgage contract or commitment that I signed in 2007. Just wondering if I can use this as a leverage to negotiate these fees lower ?
Ash
Ash,
You may not see that in the commitment or mortgage contract but all the details would be in the papers you signed at the lawyer's office when you got the mortgage. So, check the details in the file of papers you received from your lawyers and it would definitely have a paper explaining their schedule of charges and you would see it there.
Is the mortgage completely paid off? If you are switching this mortgage to some one else on renewal then your new lender may absorb this fees either partially or fully.
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Pramod Chopra
Senior Mortgage Consultant
Mortgage Alliance Company of Canada
Thanks Pramod. I will check those documents.
The mortgage will be paid off in a month. Even if I decide to wait and switch it, I guess I may be just delaying the inevitable as the new company will also charge me when I finally pay it off.
Ash
ashcanada ,
transferring ur mortgage is not the solution, u could get tagged with other fees after u switch and close ur mortgage too soon.
Try to see if ur bank is offering any incentives for opening a LOC ..
I got 1500$ for opening a line of credit.. if i close loc i have to payback a prorated amount.. this is how i postponed paying the discharge fee until later and when i do pay the discharge fee of the 1500$ will cover it..
Quote:
Originally posted by dudewheresmycar
ashcanada ,
transferring ur mortgage is not the solution, u could get tagged with other fees after u switch and close ur mortgage too soon.
Try to see if ur bank is offering any incentives for opening a LOC ..
I got 1500$ for opening a line of credit.. if i close loc i have to payback a prorated amount.. this is how i postponed paying the discharge fee until later and when i do pay the discharge fee of the 1500$ will cover it..
Are you talking of secured LOC ?
if so , if you dont mind .... can you please share
you got $1500/- for opening with bank ....
what about the setting up fee etc ?
were there any other conditions ?
