Peter Taylor, with ReMax in Edmonton interviewed me last Friday for his video blog. The topic? Mortgage payout penalties.
What's the deal with payout penalties? If you sign a closed mortgage and end up paying your mortgage out early, you'll incur a payout penalty. Generally speaking, most institutions charge a 3 month interest penalty or an interest rate differential, charging you whichever number comes out the highest. The difficult part to figure out, in regards to payout penalties, is how to actually calculate yours. This is simply because different mortgage lenders calculate the penalty in a variety of ways. It can get very complicated and confusing. Thankfully, in the March 2010 federal budget, the Finance Minister Jim Flaherty, promised to work on standardizing the mortgage payout penalties charged by lending institutions. This would be a welcome move, appreciated by mortgage consumers and independent mortgage brokers across the country!
Should you have a question regarding a mortgage penalty, please contact me anytime!
Thank you Peter for taking the time to interview and promote me!
Here's a clip of my interview with Peter. Wow! I didn't realize how much I talked with my hands (try your best to ignore my flailing limbs which seem to almost take Peter out a few times)! :)