Mortgage Contract Insanity

[mandolinatou]

I had mentioned we were considering breaking our mortgage with Laurienntienne to take an offer from CIBC. This time I have been using all the advice I got on SCs to do it smartly because I honestly believe at our first signing we were purposely mislead. So we discussed it and decided if everything is on the up and up, its in our advantage to break our current mortgage, pay the penalty and sign with CIBC. Except I called the CIBC representative today and requested she send me the contract a week in advance so we can read the fine print before signing. She said "we never do that." in the years I have worked here no one has ever asked to read their contract in advance." I informed her I can not sign it if I don't have a week to read the fine print...that it was neither personal nor in opposition to CIBC but that this time I want to be informed and understand what I am signing. She wanted to tell me what I am signing exclusively. Does anyone else think that is sort of insane? Did anyone on here read the mortgage they signed?

[SassyAshley]

I read mine but we read it at the time of signing. We meet out mortgage broker he went over some stuff and gave us some time to read it over, asked if we had a questions, we had a couple he cleared up and than we signed.

[tjthemanto]

I had mentioned we were considering breaking our mortgage with Laurienntienne to take an offer from CIBC. This time I have been using all the advice I got on SCs to do it smartly because I honestly believe at our first signing we were purposely mislead. So we discussed it and decided if everything is on the up and up, its in our advantage to break our current mortgage, pay the penalty and sign with CIBC. Except I called the CIBC representative today and requested she send me the contract a week in advance so we can read the fine print before signing. She said "we never do that." in the years I have worked here no one has ever asked to read their contract in advance." I informed her I can not sign it if I don't have a week to read the fine print...that it was neither personal nor in opposition to CIBC but that this time I want to be informed and understand what I am signing. She wanted to tell me what I am signing exclusively. Does anyone else think that is sort of insane? Did anyone on here read the mortgage they signed?

I didn't read mine in detail ..too much legal mumbo jumbo in there and lot of fine print..most probably put in there deliberately.

but I read the major parts thoroughly like the pre payment penalty , breakage penalty , pre payment options, rate of interest , term , amortization , portability etc.

but rest was giving me a headache and seemed like a standard policy but you never know

its never in plain English for some reason , I guess that's where they get you

[themortgageguy]

I had mentioned we were considering breaking our mortgage with Laurienntienne to take an offer from CIBC. This time I have been using all the advice I got on SCs to do it smartly because I honestly believe at our first signing we were purposely mislead. So we discussed it and decided if everything is on the up and up, its in our advantage to break our current mortgage, pay the penalty and sign with CIBC. Except I called the CIBC representative today and requested she send me the contract a week in advance so we can read the fine print before signing. She said "we never do that." in the years I have worked here no one has ever asked to read their contract in advance." I informed her I can not sign it if I don't have a week to read the fine print...that it was neither personal nor in opposition to CIBC but that this time I want to be informed and understand what I am signing. She wanted to tell me what I am signing exclusively. Does anyone else think that is sort of insane? Did anyone on here read the mortgage they signed?

I hate to say it but what is happening to you isn't unusual. If you read the fine print you may see the following:

1) that the breakage penalty calculation will effectively use the posted rate at time of your signing NOT your actual rate as the reference rate.
2) no prepayments within a specified time around your notice to break the mortgage should you wish to do so.
3) prepayments calculated on the declining balance of your principle.

Its a huge financial obligation that you're responsible for so it's wise to ask to see it first. However almost nobody does.

It's lunacy that your lender won't allow you to see a contract they expect you to sign.

I'd walk away.

By the way, why are you doing this yourself? The issues you're having is exactly what a mortgage broker covers off for you. Little effort in your part and the service is usually free.

[MortgageQueen]

Unfortunately, banks play very sneaky games like this. Mortgage guy is right. A broker will (or should) go over every line of the contract with you and explain everything.
If you were hoping CIBC is better for prepayment penalties, think again. they use a posted rate for their penalty calculation too. Sorry to be bearer of bad news.
Frankly if a company said I couldn't review a contract at my own speed, I'd be running the other way. Alternatively, you could book a 1 hour appointment and "force" them to go through the contract line by line. . . . but even than, if the explanation does not add up to the way it's worded, you could be getting an incorrect explanation.

I once had a client whose lender told him he was signing a mortgage loan contract, when in fact it was a demand loan. Blind trust has the potential to not end well.

[tobiwobi]

Yes you can let them know that you will be coming to read every line on the contract and sign if satisfied and happy with all terms, once you understand all terms, and that you will not be just blindly signing on lines that they point out to you.<br><br>I went through a mortgage broker and he had a mortgage pre-qualifying contract for us (with Scotiabank) where their terms are outlined and we sign to hold the rate for a certain period of time, and then when we came in to the branch for actual mortgage signing, the contract was the same as what we have signed to pre-qualify. <br><br>And they were weird at the branch, asking us to sign that we have received their Scotia mortgage booklet, but then not giving the booklet to us and fumbling that they ran out of copies. not that you can change any terms, but legally if they are required to have us sign that we have received information, they should actually give it.

[tobiwobi]

But in your case, here is CIBC fighting to take your business (that interest that you are paying) away from other bank, they should treat you nicely.

[tinambulance]

The time to read your actual mortgage is at your lawyer's office because the lawyer's paralegals prepare them, not the bank. You will sign the mortgage disclosure statement and the mortgage approval at the lawyer's office, not at the bank. If you have questions, you need to talk to your bank before you are approved. And all mortgages are demand loans in that the bank can call in your mortgage at any time.