As a Port Elgin mortgage broker, I am constantly watching for relevant articles that relate to your mortgage.
What a great little article from the Globe and Mail that starts:
“Expect a goodbye kiss from your lender when you finally pay off your mortgage. An example of inappropriate contact? You bet. A goodbye kiss is the euphemism in the mortgage biz for the fees that clients are typically charged when they finish paying their mortgages and reach a zero balance.”
Whether you are changing lenders at renewal – or making your final mortgage payment and having a mortgage burning party – lenders do charge a “discharge fee” ranging from $250 to $400. From their perspective, it covers the administration and legal fees to close the file and remove the Charge against your property. From a borrower’s perspective, it can feel like a penalty for actually paying off your mortgage.
Either way, it does exist – it is written into your mortgage contract – and like death and taxes, it will be there when you are finally celebrating being mortgage free!