Can you Trust a Mortgage Pre-Approval?. . .

[MortgageQueen]

what is a normal penalty for breaking or renewing your mortgage early, is it still 3 months interest?

No, not with a "fixed rate" mortgage. I'd love to be able to explain to you how the individual banks come up with the penalty but they all have their own convulated formula. They are required by law though, to have a penalty calculator on their web sites.
IF you have a variable rate mortgage, it would likely be a 3 months interest penalty. Their are many Lenders out there that are offering variable rate mortgages with much higher penalty rates, so please be careful.

[JKD2015]

Nope, I have been pre-approved over the phone, but then they found all types of problems during the actual application process and asked me to put up an extra $15,000 in down-payment or they wouldn't be able to move forward. That was with CIBC, so beware!

[MortgageQueen]

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[MortgageQueen]

Nope, I have been pre-approved over the phone, but then they found all types of problems during the actual application process and asked me to put up an extra $15,000 in down-payment or they wouldn't be able to move forward. That was with CIBC, so beware!

I deal with this scenario all the time. Get lots of business from banks who pull this trick. Give me a shout if you still need te mortgage.

[JKD2015]

I deal with this scenario all the time. Get lots of business from banks who pull this trick. Give me a shout if you still need te mortgage.

I appreciate it MortgageQueen, but that was last year and I ended up getting approved by First National going through True North Mortgage. They were great and got me an even better rate than CIBC, without all the hassle.

[MortgageQueen]

GooD!!!