Mortgage secrets that the banks don't want you to know 🤫

[@k_m_d_79]

Prepayment limits and penalties need to be banned. This is exploitation to the worst extent! What is the central bank doing? Is there no guardrail for stopping such exploitation?

[@growwithnav]

I know… but that’s how banks make money and generate employment for so many Canadians! I just feel that they are overused and we rely too much on them to always do the right thing because they are so big

[@k_m_d_79]

⁠I agree with you! Look at the lending and deposit interest difference: 6% and 1%, respectively! This is another way of exploitation. This is not the way a bank needs to make money, and it is not ethical! Global banking has gone ahead so far. These conventional ways of exploiting customers will only weaken banking in the long term. That's what we saw during the 2007 recession in the US. Why do banks here need to follow the same path? Nowadays, a property worth 250k has been mortgaged for 750k in the hunger of multiplying profit! You can make out where this is heading!

[@GoodCitizen-eh1id]

@@k_m_d_79 bank/govt let ppl flip same house twice of thrice in 5 yrs as everyone was minting money bank on penalties, real estate agents on commissions and govt on land transfer taxes and lawyers on closing costs this adding unproductive costs to the product and calling increased value.

[@GoodCitizen-eh1id]

This Ponzi scheme benefited few but rob many.

[@harrypatani]

@@k_m_d_79 you should know all your options to save yourself from getting exploited. Either use the bank's money to move forward or your own. Banks are not going to change, no matter what happens in future and I agree with you on where we're headed but again that's not going to change banking towrds favouring it's cutomers.

[@nicolea5293]

Great video and nicely executed.

[@farhanmaqbool7]

Thank you for sharing

[@harmeetsingh434]

Thank you for sharing. You have an excellent way to educate people.

[@growwithnav]

🙌🙌

[@meeta400]

Traditional banks can effectively create money through lending, thanks to the fractional reserve banking system. B-lenders, however, typically rely on private capital or funding from investors to issue loans. They don’t have the ability to create money out of thin air in the same way banks do. Hence, higher rates.

[@saurabhbabbar2631]

Great video! Thanks for sharing!!

[@mjyothsna4592]

Awesome, can you do part 2 vedio of this with other clauses that needs to be considered

[@growwithnav]

Will try, there are too many to count.. it’s better to talk these out when you are getting a mortgage. These 4 are the most common Watchouts.

[@avadhpatel111]

@@growwithnav , please share a part-2 if there are more things to watch out for. Also, we would love to have certain things covered in the part-2 such as (but not limited to), what, why and how to look for a mortgage as a FTHB, Investor, Short Term Living and Upgrading perspective etc. Thanks in advance and will buy you a coffee once!

[@saranyavasi4913]

Hi, Does credit union come under banks or monolines ? Please let me know. Thanks

[@kushagravyas2891]

Great content…learned quite a bit

[@growwithnav]

🙌

[@sandeeptanjore1253]

Why is that in Canada we do not have a 30 year fixed rate mortgage like the US? US, to that matter , is a better market with better financial products and not to mention the cost of living.

[@growwithnav]

30 year fixed term mortgage isn’t good for the bank to make money :) and Canadian banks never lose money

[@sandeeptanjore1253]

@@growwithnav This is very bad. In fact BS I would say (I am not trying to blame you or hold you responsible). What I mean is this country for finances or other services is cut throat. Sadly neither PM Aladdin (Trudeau/false dough) has addressed this nor will future PMs of Canada would do anything to address this. People eventually need to have more choices leading to higher competition. This would make the country competitive and consumer friendly.

[@growwithnav]

Agree 💯

[@curiousp9700]

@@growwithnav Canada doesn't have a liquid market for mortgage backed securities (Canada Mortgage Bonds). Though a AAA crated country (lol), investor don't want to risk their money for 30 yrs with CMB. If there are investors for CMB, Banks would happily provide 30 Year fixed rate mortgages

[@TheRaimaxr]

Answer to your question. This is how a failed economy like Canada works and exploit citizens and expats where federal government has full control of land and development and suck money out of it by teaming up with the banks. Just imagine only 40 million people lives there yet they have some of the worst products and policies. US market is completely based out of uniform demand and supply and government help people to become eligible to fulfill the demand products are designed that way.

[@akshaywalia0408]

Thank you so much for sharing this information. Love the way you present facts with spreadsheet :)

[@growwithnav]

Thank you 🙏

[@pjsriar]

Great content, and a very informational video full of knowledge.

[@growwithnav]

Glad it was helpful!

[@jassy583]

Nav great video. I like your video content. I think there is Huge misrepresentation in Canada as how mortgages are done in Canada. There is big misrepresentation where fake documents are created and mortgages approved and there is small misrepresentation where principal and invesmnet properties are interchanged to get mortgages approved etc etc. There are Profesional people who do not do fraud but again there are many who do mortgage fraud. Look at how developers sell so many properties accepting fake pre approval letters creating high demand and increase in price.

[@growwithnav]

I agree. And I am on a mission to leave this industry better than how I found it :)

[@rahuldsouza2708]

Portability clause was bit confusing

[@channelguru561]

Great Content. Thanks for the Video. When we break a fixed mortgage, penalty would be Differential amount you showed in the video or 3 months of interest or whichever is higher ?

[@growwithnav]

Differential or 3 months of interest - whichever is higher

[@parteeksaxena9284]

Great stuff!!

[@theinvisibletiara]

Hi. Can you please share from where did you get the shelves behind you from?

[@growwithnav]

Wayfair

[@harrypatani]

Hey Nav, good video but I want to add a points here: 1. Agreed that most first time home buyers will break their mortgage in 3 years but 90% of them break their mortgae because they will be upgrading their home. Why would one not port their existing mortgage onto the next property? Generically speaking most of the big fives allow upto 4 month's from the day you break your mortgage to close on the new property and you blend your rate and get your penalties back? (This way you end up paying 0 penalties). I understand that your blended rate will be higher than the rate you might get if you do not port your mortgage but you end up saving on penalties which as per your calculations are of enormous amount. 2. RBC and CIBC stricktly does not work with broker channel in Canada, I am sure that is why you are not taking their names and took Scotia's name as they work with brokers heavily. Thanks for the video!

[@growwithnav]

🙌👏

[@KiranAmin-c1p]

Hi Nav, thank you for sharing this wealth of knowlege with us. in one of you videos you share and excel sheet showing getting fixed mortgage rate vs variable rate with rates changes assumingly coming . would you able to share that or how can i calculate that. thank you for your help

[@growwithnav]

Thank you :) the excel was manually created for one of my clients and doesn’t work for everyone, unfortunately :/ it’s not automated.

[@curiousp9700]

Very Informative, Really appreciate your effort! What about penalty with respect to Variable rates to Fixed rates? Is it standardized across all Banks/Monoline? or there is variation over their as well? Again, why would you not suggest with Monoline if the downpayment is 20% or more? Is it due to HELOC?

[@growwithnav]

Thank you. 1. Variable to fixed within the bank is free - all banks and monolines. 2. Breaking a Variable with a bank is about 1.5- 2X penalty vs monolines… as most banks calculate penalties on different base. 3. Yes, HELOC is one reason if you would ever want to take one. If you don’t need that option, then monolines will work just fine 👍

[@curiousp9700]

@@growwithnav Thanks! switching variable to fixed with different bank (from Bank A to Bank B/monolines) - will the penalty will be straight 3 months of interest or there is hidden calculation like fixed

[@adeel204]

Thank you Pa ji, Is it possible for you to share the excel doc for our reference? TIA

[@growwithnav]

Don’t have something that can be shared. Most of it is internal with formulas and numbers we use with our clients. Besides, won’t mean anything without the name of the banks :)

[@ramakrishnang55]

My mortgage is with a monoline at prime-0.4% . I have 3 more years left in my mortgage and also have 35% equity. Is it worth taking a new mortgage considering the 3 month interest penalty ? Do new lenders compensate these ?

[@growwithnav]

They don’t cover all the penalties. Why don’t you check with your lender? Most Monolines would let you refi without penalties. WHO do you have your mortgage with?

[@ramakrishnang55]

@@growwithnav it is with first national. The rates were set for 20% DP. .Since now I have 35% equity and rates for this is much lower , I wanted a switch. However as you suggest , if negotiating with them is an option , I will try it with them. Thanks for your suggestion.

[@jai5628]

Does mortgage agent get higher commission rate from mono lines then bank?

[@growwithnav]

No.. why would you think that?

[@brightspark2633]

My long-term goal is to become a mortgage agent, and my short-term goal is to become a mortgage underwriter. Could you please guide me?

[@growwithnav]

I have a video on this

[@mateenahmad3887]

Does home appraisal and refinancing mortgage within the term from the same bank avoids the penalty?

[@growwithnav]

Some banks allow that - yes. But not in all cases.

[@nicolea5293]

When you refinance you borrow more money than you initially got. So you can create new additional mortgage for the additional amount approved at new terms and rates.

[@btailor05]

Please explain how lender B calculate penalty?

[@growwithnav]

the same as top 5 banks.

[@Tremor-5.0]

I am bit sure why i git a prepayment with bmo at 20 percent’s principal.

[@growwithnav]

BMO is 20% That’s not a big differentiator though.

[@Tremor-5.0]

@@growwithnav yup agreed and j have been screwed up with bmo though , i got roped in paying 15 percent of the mortgage where i had capability to pay 20 percent but i never had enough credit history- only had been a year in the country - and i had to pay additional cmhc 7800 cad . Which now pinches .! But it is what it is, i guess . How can i connect with you to explore a strategy i was thinking about and how should i go ahead .

[@PatelPerspectives]

Hey Nav, it’s was a grt video , I just want one answer from u that I have purchased a new condo worth of 144,500 n interest of 6.79 % for 1 year term only n I m doing weekly accelerated for 198 $ but also I m doing extra payment of 198$ should I do extra payment or not …will it save money

[@growwithnav]

I think you are fine 👍 Are you living in the condo?

[@nicolea5293]

Anytime you can make prepayment do so as it reduces the principal right away thus reducing your amortization. You save a ton of money this way. Just think of not having a mortgage payment for couple of years earlier than your 25 / 30 years. Since the mortgages are not charging simple interest don’t think it’s money you can multiply faster( prepayment money).

[@SreemantaKesh]

Can we not have ammortization for 30 years now?

[@growwithnav]

For new built homes only

[@k_m_d_79]

Increasing the amortisation tenure is the biggest blunder someone can do! Simply calculate the amount of money you are loosing by doing so! It is better to wait than donating hard earned money for others profit

[@growwithnav]

I agree 100%

[@SreemantaKesh]

@@k_m_d_79 would you say the same. If one is trying to aggresively payoff the loan by doubling down the payments and finishing the loan in 7-8 years?

[@nicolea5293]

Unless you’re at a place where your monthly income is not supporting your mortgage payment

[@brightspark2633]

Hi, Thanks for your great videos, Im currently under workpermit. Can I buy a house with my relative who is a Canadian citizen? Will they tax 20%? Morgage payments will be paid by me and my wife.

[@growwithnav]

Thanks :) Yes - you will still have to pay 20% NRST.

[@brightspark2633]

@@growwithnav thank you

[@mdfuadhasancanada]

What does it mean "Breaking two year early"?

[@growwithnav]

If you break the term because you are selling / upgrading / refinancing for lower rate etc.

[@mdfuadhasancanada]

@@growwithnav Thanks

[@RV-p5h]

Bank 5 is CBR :P

[@growwithnav]

Might as well be 🤣

[@alvin_varghese_092]

RBC?

[@GoodCitizen-eh1id]

TD

[@nicolea5293]

Look at the initial picture for correct answers in the beginning of this video.

[@kiritheepanthangarasa2383]

Don’t pay rent for him

[@martinwanswettjacob5979]

Do you so smith manoeuvres policy

[@nicolea5293]

Please review Smith manoeuvre and velocity banking video. I will be eagerly waiting. Thanks

[@avadhpatel111]

Save this video. Save this guy before banks kidnap him and put in the basement of those shiny skyscrapers of downtown!!

[@growwithnav]

🙌

[@amarpalsingh4320]

I have 3 years remaining on my mortgage, i have 6.75% variable rate and i am getting 5.19 % fixed 3 years. Should I switch to fixed and save some interest. I am not planning to sell in 3 years. Fyi love your work 😊

[@growwithnav]

You got a really high variable rate for some reason.. why is that? Is this your primary home? Which bank? It will be best to book a call from the link in the description to explore options.

[@amarpalsingh4320]

@@growwithnav its with RBC first time home buyer, yes its a primary residence we bought it 2 years ago for 800k

[@growwithnav]

Hmmm.. maybe wait until the rates are below 5%. Most banks are below 5%, RBC is a bit “special” though!!

[@amarpalsingh4320]

@@growwithnav Bro RBC offered me 4.94 3 years fixed, should i take it? what would be your suggestion considering 6.5-6.7 percent variable that I currently have

[@nicolea5293]

Scotia has given 4.19 to a friend for 3 years. Look into it

[@AxAz12515]

Just noticed a scammer!!!! Must be Indian😅😅

[@canadianjatti]

where is the scam? if you are going to accuse people of being scammers then back it up with facts...hes just giving info nothing else

[@LEGIT_BANK_STATEMENT_CREATOR]

Does contract specialist get higher commission rate from mono lines then, at that point, bank?

[@GoodCitizen-eh1id]

TD 125%

[@growwithnav]

Only at the branch.

[@ankushwadhwa]

@@growwithnavwhat does that mean?

[@StinkyIndianStudent]

Scammer👳‍♂️

[@LEGIT_BANK_STATEMENT_CREATOR]

Does contract specialist get higher commission rate from mono lines then, at that point, bank?

[@growwithnav]

No.. some banks are higher