Banks the real robbers

So here we are in a pandemic, even a crisis one might say and yet the big banks are taking full advantage and making out like bandits.

With the Bank of Canada dropping rates to near all time lows supposedly to “help” people it is allowing the banks to charge astronomical payout penalties to those forced to sell their homes through no fault of their own.

Imagine you’ve lost your job due to COVID. You managed to hang on for a while but still can’t find work and can no longer afford your mortgage payments and are forced to try and sell your house. You call the bank and find out that because rates are so low you are forced to pay a payout penalty based on what they call an interest rate differential or IRD of $10,000, $20,000 even $30,000 or more. Yes, that is NO exaggeration.

It just happened to two people I know, one was $12,000 and the other will be $17,000 if they are even able to sell. A lady in Ontario just got hit with $30,000. Worse yet, if the rates drop any more between the time you sell and the time you close those penalties can skyrocket even more.

My one friend who contacted the bank looking for some compassion was told “it is what it is and it’s in your contract”, so much for compassion. So if your forced to sell you had better check with your bank so you don’t get a big surprise at the lawyers. In tough times we must band together and help one another, unless of course you’re a bank and it’s going to impact your already ridiculous profits. Shame on them! Where is the government when you need them, oh yes I forgot, on a retreat.

Ken Quesnel