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Ian Watt Personal Real Estate Corporation - Sotheby's International Realty Canada

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Mortgage Penalty on a 10 Year 2.99% Fixed Rate

Vancouver Condo Real Estate Video Blog #710 - March 19,  2012

 

Mortgage Penalty on a 10 Year 2.99% Fixed Rate

 

Ian Watt video blogs about how the 10 Year 2.99% fixed rates may attract buyers, the mortgage penalties can be astronomical should you break the mortgage in the first 3 years of the term. If you want to voice your opinion or if you don't care for Ian's comments please email your feedback to ianwatt@ianwatt.ca and visit http://www.ianwatt.ca/RealEstateVideos for all the Ian Watt Real Estate Video Blogs. Please note that opinions, real estate practices, prices and data always changes over time, so please keep in mind the date when this video was published as the information could have become irrelevant over the past days, months and years. Copyright iWatt Media © All Rights Reserved 2012 http://www.Chapter12.ca/ .

 

Ian Watt: Hi good afternoon it’s Ian Watt in Downtown Vancouver. In regards to the last video blog I did regarding the Bank of Montreal, RBC etc., 2.99 ten year fixed rate something that I found interesting when I dug a little deeper is that I was thinking most people don’t live in their places for ten years probably four to five years. So what happens if you break that mortgage if you’re trying to get out of the mortgage earlier and I spoke with somebody at RBC and they said depending on the mortgage amount but say it’s a six hundred thousand dollar mortgage broken in the first three years. The penalty for that would be approximately fifty thousand dollars. Fifty - five zero. Fifty thousand dollars to break the mortgage which is crazy. So anyways if you were going to get a ten year fixed make sure you gonna live there for a long time because a whole lot of life can happen in ten years time. My name is Ian Watt and if you have any questions you can always email me at ianwatt@ianwatt.ca. Thank you very much and have a great day!