Experience with Rbc Mortgages

Hello everyone, I am close to renewal time of my mortgage. I got sucked and im a sucker!! for signing a collateral mortgage with Scotiabank. I dont need or want the loan and I have been calling around for the best way to move out. I found out that RBC would absorb all the fees (appraisal, notary and discharge) for taking the collateral mortgage out of Scotiabank and will convert me to a conventional mortgage. They are even giving me a better rate than the one Scotiabank is offering at the moment. I was wondering if anyone has opinions or similar experiences with Rbc. It just sounds to good to be true.:shrug: Thanks in advance

Hello,
My friend just reimbursed his RBC mortgage early (he sold his house, 3 years into this mortgage) and it cost him $7000 to get out of it. I would say check what their cancellation and early reimbursement policy is, other than that, it does sound like a good deal!

I'd be curious what rate they're offering you. Nothing is for free. Especially with one of the Big Banks. Did you check to see if theirs is a collateral charge?
Ing_rep is right about their penalty. It is one of the highest you'll pay.

I have 2 mortgages with RBC. My experience with them has been good.

Tanks so much all for your responses. @MortgageQueen i got an email from bank representative stating the charge is standard. They are offering a 4y for 2.54 which i imagine is where they will recover their part. The perk of going with them is that at next renewal time, I can shop around. Scotiabank is giving me a 5 for 2.79 stating that they dont see why i dont want to stay with the collateral charge Mortgage.

So what they're giving you is the 5 year rate you'd get with a broker. . . so yes, they are paying themselves for the fees they describe as free.
You can also get fees paid with certain lenders via the broker channel. . .fyi.

Please see the post on penalties I'm about to post.

Hi mortgagequeen could you please tell me what fees will be covered via broker? Thanks

They vary from Lender to Lender. There are minimums when it comes to mortgage amount as well.