Buy condo scarborough . Will the bank renew the contract automatically for the guests? Not necessarily. The bank has no responsibility to renew the contract automatically for the guests. If the guest has a record of refund or forgetting to make contributions in the past, it may also constitute an excuse for the bank not to renew the contract.
Or when the guests expire a few years later, due to various reasons such as not having a job or going through divorce, the economic environment has changed, the income has decreased, and the consideration of the banks is also different. As a matter of fact, the bank does not need any reason to renew the contract for the guests automatically. Just like when the guest’s contract expires, he can repay the loan in full or transfer it to another lending institution to continue the rest of the loan. The guest has the absolute right to do so.
The situation of commercial loans is even worse. at maturity, commercial loans are more likely to encounter the reluctance of lending institutions to renew their contracts, which is more common than residential loans, and banks can refuse to renew their contracts for no special reason. Even if the guest makes contributions on time, the bank has the right to refuse to renew the contract for a variety of reasons. For example, it is expected that this kind of business will encounter difficulties in the future, so banks do not want to provide loans to those who operate this kind of business.
When these things happen, guests will feel helpless and at a loss. We usually suggest that guests make arrangements 60 to 120 days before maturity to see if there are other institutions that can provide loans and give them a better and more suitable mortgage. At that time, even if your bank no longer provides loans, there is no need to hesitate to look around. In fact, this kind of situation is not uncommon.
Q: will the bank charge a renewal fee when the mortgage contract expires?
A: generally speaking, banks will try to charge a fee for contract renewal, or suggest that customers who use the bank licence rate (Posted Rate) to renew their contract within a certain period of time will waive the renewal fee, while ordinary residential loans usually do not charge a fee for renewal.
Q: if the current lending rate is at a floating rate, what will be done when the interest rate rises?
A: the vast majority of floating interest rates give guests the freedom to change to a fixed interest rate at any time. If the guest thinks that the increase in the interest rate is only a short-term trend, the guest can adopt a wait-and-see attitude, otherwise, the guest can ask to lock the interest rate instead.
Q: the current loan is a closed-end loan. When is it a good time for (Closed Mortgage), to pay a fine for (Penalty) to leave the existing lending institution?
A: generally speaking, if 2% to 3% interest can be saved, it should be worth paying the fine and leaving the existing lending institution. For lenders, it is technically called “Break & Run”. When you move from an old lender to a new lender, the new low interest rate is usually low enough to repay the fine you pay, sometimes even a few months later. If the loan amount is the same, transfer from one lending institution to another bank generally does not have to pay legal fees, and new lending institutions do not have to charge any fees.
Q: do I usually have to pay a fine when I transfer the loan to another lending institution?
A: not at all. When the loan matures and (Mature) is transferred to another institution, there is no need to pay a fine. If you transfer to another institution before the expiration date, you will have the opportunity to pay a fine. If your loan is fully open-ended (Open), you should not have to pay a fine. If your loan is a closed-end (Closed Mortgage), you have a higher chance of paying a fine. If guests consider early transfer, they need to figure out whether it is worth it or reduce the fine. sometimes the new loan company will provide some incentives to reduce or alleviate your penalty.