Did you know that, according to the statistics from Statistics Canada and CMHC – Approximately, 22,692 Niagaran’s per year break their 5yr fixed rate mortgage with a Big Bank?
Did you know the difference in penalty from most Credit Unions and Monoline lenders to a Big Bank, average in Niagara, $4,652.56?
Statistics for Niagara:
(Big Bank 74.18% national market share vs credit union/monoline lender national market share 25.82%):
447,888 people/consumers @ 27.9% mortgage holder rate = 124,961 residential mortgage holders @ 74.18% Big Bank mortgage holder = 92,969 Big Bank mortgage holders @ 60% fixed rate = 55,618 mortgage holders @ 68% 5yr fixed rate = 37,820 mortgage holders @ 60% early termination rate (breaking your mortgage before maturity) triggering IRD penatly = 22,692/yr (multiply) net dif. on how IRD is calculated from Big Banks to Credit Unions/monoline lenders – $4,652.56 based on the averages (national mortgage balance, breakage in month 42/60) = net looses up to $105,575,891/yr based on the variation from how IRD is calculated from a Big Bank to Credit Union/Monoline Lender – if all the Big Bank clients chose a different option Niagara’s “people” would retain up to $105,575,891/yr – this is just ONE policy.
If we multiply the difference in penalty – $4,652.56 based on the averages (regional mortgage balance, breakage in month 42/60) times the amount of people who break their mortgage 22,692. The people of Niagara, due to NOT being aware of how policies work, loose approximately, on average annually $105,575,891
If all the Big Bank clients chose a different option like FirstOntario Credit Union or a monoline lender like MCAP we collectively would have an additional $105,575,891/yr kept in our local economy? This is just ONE policy.
If you want to learn how there is such a large variation (Big Banks charge for their IRD penalties appox. 3.7% of the mortgage balance vs most Credit Unions and Monoline lenders who only charge appox. 0.7% of mortgage balance)
Please contact me – www.dominionlendingniagara.ca