Hi all. Need an advice from the community. Recently me and my partner purchased a new house (for us to live instead of the old one). As soon as we got a S&P agreement on the new house I listed my old existing house which was subsequently sold shortly after. The previous house was on my name only where the new one was on both our names.
My intention was once we sell the house to keep the fixed mortgage which I thought we could simply transfer to the new house and pay the profit we made on the sale towards the new mortgage.
On the settlement day just an hour before the deadline for the new owners to get the key release I got a call from the bank. The guy sounded really confused but he explained to me that I cannot transfer existing mortgage to the new place, I have to pay it off first and then only the balance will be paid off to the new mortgage. I had to reluctantly agree as otherwise I was told they won't release off the security from the house and subsequently the buyer of our place would not receive the keys before the deadline. Later on I logged in to the online banking to check what happened and found out that not only they paid off the mortgage on my investment property instead of the mortgage on the owner occupied house which I sold but they also charged me a break fee of $5,500.
I emailed the bank today to check what happened as I never intended to pay off my investment property and they told me they did everything right and since they had to break the fixed mortgage the break fee would have to apply. They promised to look into the fact that they closed off the mortgage on investment house instead though.
I wonder if this is what they said is correct and also can the bank charge the break fee without letting me know about it first.
My intention was once we sell the house to keep the fixed mortgage which I thought we could simply transfer to the new house and pay the profit we made on the sale towards the new mortgage.
On the settlement day just an hour before the deadline for the new owners to get the key release I got a call from the bank. The guy sounded really confused but he explained to me that I cannot transfer existing mortgage to the new place, I have to pay it off first and then only the balance will be paid off to the new mortgage. I had to reluctantly agree as otherwise I was told they won't release off the security from the house and subsequently the buyer of our place would not receive the keys before the deadline. Later on I logged in to the online banking to check what happened and found out that not only they paid off the mortgage on my investment property instead of the mortgage on the owner occupied house which I sold but they also charged me a break fee of $5,500.
I emailed the bank today to check what happened as I never intended to pay off my investment property and they told me they did everything right and since they had to break the fixed mortgage the break fee would have to apply. They promised to look into the fact that they closed off the mortgage on investment house instead though.
I wonder if this is what they said is correct and also can the bank charge the break fee without letting me know about it first.
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