Note: This does not include OUTCAN postings, which, thanks to Lucie Mann, has no IRD penalty.
Just an update, Group Mortgages has changed their policy. You can no longer get a second mortgage with them unless you are porting your mortgage with another financial institution and you are restricted to no additional money on the first mortgage. In other words, if you need any more money and want to get the $25,000 home relocation loan from Group Mortgages, you're stuck going with them. They will, to a point, match competitors rates as a previous poster has mentioned. The problem with this is, once you're in with them you have to pay fees to take your mortgage elsewhere, and they (many banks, not just CIBC or Firstline which is a trust), the Group Mortgage, know this so they won't necessarily give you a competitive rate when it's time to renew.
For the Home Relocation Loan to be pumped as a benefit in the IRP books they give you, when in fact it is not accessible to everyone moving, is very disappointing to say the least. Unfair really for a benefit like this to only be open to some people and not others. The Group Mortgage would not be out any money by offering the HRL to everyone as the military pays for the interest on this loan. Group Mortgages in my opinion is simply being greedy.
I believe someone else mentioned that, even though Group Mortgages has the agreement with Brookfield, they do not have an exception for military pers to pay only the three months interest for breaking the mortgage (vs the Interest Rate Differential which at times can cost you thousands of dollars of which you will be out of pocket for). For them to NOT have this exception for military pers when other financial institutions do, to me is a complete crock.
I've also read that if you do go with a second mortgage with the Group Mortgage, it is a royal nightmare dealing with the policies. Staff are great to deal with, it's the policies that hinder good customer service.
For these reasons, along with a general sense that the level of customer service at the upper echelons of CIBC is lacking, we decided to forgo the $2-$3K we would have saved up front by going with the Group Mortgage and are going with another financial institution which is well known for wanting to keep their customers happy and also have an exemption for military pers for the interest penalty when and if we have to break our mortgage. I feel the $2-$2 saved up front would quickly be eaten up by the higher interest and penalties we will pay in the future if we stuck with the Group Mortgages.
Just a few things to consider when arranging for your next mortgage.
