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  #1  
Old 2009-02-19, 11:11 PM
worven worven is offline
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Default Beware of predatory lenders in Canada and Brokers that promote them?

If you are a signing a mortgage contract especially through some of the notorious mortgage brokers in Ottawa, Please ask for a copy of the contract at least a week in advance, read through it many times, review it with your lawyers. Don't ever sign a contract in a Hurry.

I was suckered in to one such deal, the lender was "Industrial Alliance". Watch for the prepayment penalties!!!!. In my case the estimated prepayment penalty is 25K on a 200K mortgage, if I have to sell my house and move to a province that they don't lend in.

In my opinion, if any mortgage broker recommends "Industrial Alliance" as the lender with the best rate without disclosing how they screw borrowers with prepayment penalties, run don't even look back. You'll do much better in the long run.

PM me if you need information on the mortgage broker that suckered me into this deal.

Any lawyers interested in launching class action lawsuit against such lenders and brokers are welcome to contact me for details.

Last edited by worven; 2009-02-19 at 11:17 PM. Reason: Missed Info
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  #2  
Old 2009-02-20, 06:59 AM
Jenny1975 Jenny1975 is offline
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I think it goes without saying that whenever you enter into ANY contract, you should familiarize yourself (beforehand) with the terms, regardless of the nature of the contract or who the other party is.

I'm sorry to hear that you feel you got a bad deal, but if you were "suckered", presumably they were offering other incentives that were appealing to you.

Moral of the story: Be aware of what you are signing and do not make assumptions.
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Old 2009-02-20, 07:25 AM
worven worven is offline
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Default Suckered

When I meant suckered, I was talking about the fact that the mortgage broker had a straight face telling that all the clauses weere industry standard (in less than 2 minutes), They stuck in a ridiculous IRD clause. I did not get any special deals out of it other than, ulcer and heartaches.
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Old 2009-02-20, 03:42 PM
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canabiz canabiz is offline
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Sorry to hear that worven, there are always the fine prints that even experienced home buyers, let alone first timers as many of us on here fall into that category, have trouble with.

Now when you say review the mortgage documents with your lawyers...i am assuming it's the real estate lawyers who can do that for you and advise you of potential pitfalls or will you have to seek the services of another lawyer ?

This reminds me of Direct Buy, time-shares and other high-pressure sales jobs.
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Old 2009-02-22, 01:51 PM
LucaG LucaG is offline
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Some channels that broker use the penalties are steep. Always need to read the fine print.
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Old 2009-02-22, 02:07 PM
Mudz Mudz is offline
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I went with MCAP through a broker. There are panelties, but no where close to this. . Pre payment panelty is about $300 or something. Other then that I can pay extra along with monthly payment as long as total amount paid in a year doesn't exceed 20%.
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Old 2016-01-21, 04:22 PM
MortgageGuy MortgageGuy is offline
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Default Rate isn't everything...

I am replying to this VERY old posting from 2009, because when you google "mortgage broker reviews" surprisingly this post pops up from the building homes forum.

I currently run a post under "Ask The Mortgage Guy" and if this 2009 posting is showing up still, I wanted to finish it at least on a positive note

We all have heard the age old motto, "let the buyer beware" and that it has been around for centuries. When it comes to mortgages, one of the largest debts you may take on in your life, it becomes even more important to ask the right questions. To ensure that what you get is what you expected, and not a product that has clauses that will come back to haunt you.

In "the Mortgage Guy" posts, anyone who reads them will see that I state over and over, be aware of what you are signing, and understand that the RATE is NOT everything.
Important clause such as no bridge financing, closed on bona fide sale, minimal prepayment, and recently, collateral mortgage registration, are all out there in mortgage products with sometimes slightly reduced mortgage rates. I do not believe that a slightly reduced mortgage rate is EVER worth NOT having these important clauses.

The very expensive penalty discussed in the previous posting, even today is out there at almost any of the major banks. Mainly due to their high posted rates that are used in their IRD calculation. More importantly today, are the issues of Collateral mortgages, that back in 2009 were not even known in the mortgage market.

So in short, keep using reputable mortgage brokers. There may be a bad apple here and there, as there is in any profession, but there are lots of us out there that provide a service that will keep any client happy. We in business know that an unhappy client will never refer you another client, and will bad mouth you till the end of time. So since 1989, I have always tried to give honest advice, for the best interest of my clients. It is with that and good products that have great rates, that will keep you from experiencing the problems mentioned in the earlier posts. If you want to read more current mortgage updates, please follow me along on "Ask the Mortgage Guy", and let this posting fall away to hopefully never be seen again.
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  #8  
Old 2016-01-25, 07:47 PM
dream4homes dream4homes is offline
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Great post, you can't be too careful when it comes to investigating who it is you are working with. A quality lender doesn't mind that you are asking questions or taking time to make up your mind. They want you to be well informed. Don't be lazy about reading the terms and conditions. That mistake can cost you a ton of money and leave you bound to a contract for the duration of your mortgage loan that isn't working in your favor.
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  #9  
Old 2016-01-26, 12:50 PM
WellThatsLovely WellThatsLovely is offline
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I've got another good one for you, when I was 19 I signed a mortgage with a woman who told me over and over as we were talking that she's got a daughter my age and how she was so happy to be helping me out...
The rate we agreed upon turned out to nearly double because I somehow agreed to $10,000 "cashback" (which I didn't even need but she told me it was a good deal) and when I went to refinance, I was hit with a huge penalty (in the range of $17,000), all of which I had only found out at the end of the transaction and google wasn't really a thing yet.
It was quite the learning experience.
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  #10  
Old 2016-01-27, 03:17 PM
MortgageGuy MortgageGuy is offline
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Default Cash Back Mortgages

I have replied to this post under "Cash Back Mortgages" on "Ask the Mortgage Guy". Lets let this 2009 post go away and continue the discussion there.
Dan

Quote:
Originally Posted by WellThatsLovely View Post
I've got another good one for you, when I was 19 I signed a mortgage with a woman who told me over and over as we were talking that she's got a daughter my age and how she was so happy to be helping me out...
The rate we agreed upon turned out to nearly double because I somehow agreed to $10,000 "cashback" (which I didn't even need but she told me it was a good deal) and when I went to refinance, I was hit with a huge penalty (in the range of $17,000), all of which I had only found out at the end of the transaction and google wasn't really a thing yet.
It was quite the learning experience.
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Ottawa-Carleton Mortgage Inc.
Brokerage Licence # 10419
dan@mortgagemoney.ca
www.mortgagemoney.ca
https://www.fb.com/OttawaMortgageMoney
"Great Mortgage Rates"

613-222-2624 anytime
Off 613-563-5070
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