05/24/2018
Prepayment penalties are important. They generate millions of dollars for the banks each year. The penalty business has become a form of passive income for investors.
Do you know what a prepayment penalty is? It's a punishment for exiting your mortgage contract. It isn't cheap. I have witnessed people pay tens of thousands of dollars.
The saddest part was that it could have been a non-issue. Those people didn't get the right advice. They signed their mortgage contracts without reading them. They didn't understand how penalties get calculated.
I wonder who they worked with. How come no one advised them?
Working with an expert does matter.
A Toronto man is warning people to take a close look at the penalties they'll face for breaking a mortgage before they lock in.
