Are extreme penalties on borrowers an opportunistic scheme by the Big Six?

[et_pb_section fb_built=”1″ _builder_version=”3.22″][et_pb_row _builder_version=”3.25″ background_size=”initial” background_position=”top_left” background_repeat=”repeat”][et_pb_column type=”4_4″ _builder_version=”3.25″ custom_padding=”|||” custom_padding__hover=”|||”][et_pb_text _builder_version=”3.27.4″ background_size=”initial” background_position=”top_left” background_repeat=”repeat”]

The recent case where an Ontario resident faced extremely high mortgage penalty shows the ability that banks have to impose the strictest sanctions. When determining the penalty, most big banks use interest rates that are much higher than market rates. This difference is especially highlighted in an economic environment where interest rates decrease, such as the times of pandemic and uncertainty. For many Canadians, there’s a feeling that the big six banks of Canadian banking system profit form the financial crisis that the country is going through.

Key Takeaways:

  • Banks tend to apply extremely strict standards to lenders, which can lead to high mortgage penalties.
  • A homeowner in Calgary noted that she will be forced to pay $5,300 in interest alone to RBC.
  • Banks have used the covid-19 pandemic as a way to profit and are charging mortgage rates that are higher than the market rate.

“Ever since the coronavirus outbreak took hold of the Canadian financial system, the Big Six banks have received much flak for their apparent insensitivity to the ordinary consumer’s plight.”

Read more:



More Posts

Mortgage Calculators

15 Year vs 30 Year Mortgage Comparison Calculator [calc id=2886] Amortization Calculator [calc id=1780] Amortization Schedule Calculator [calc id=1783] Home Equity Loan Calculator [calc id=900]

no interest rate hikes

Independent Mortgage Planner

Who Should You Get Your Mortgage Through? Hi Everyone, this is Aleem Peermohamed – The Mortgage Specialist Vancouver BC. One of my existing clients, who

Four Reasons To Save Money

Four Reasons To Save Money It’s not rocket science -everyone should be saving money regardless of how much you are making. The concept of saving

Mortgage Check-Up?

Eight out of Ten Canadians make a trip to the doctor at least once a year to help ensure they remain physically healthy. But how

Send Us A Message

Scroll to Top