Discharge Penalty - In the current economy, with interest rates running at an all time low; home owners must be very careful when selling their home and paying off the existing mortgage. All mortgage lenders will charge a discharge fee for early pay-out of a mortgage and almost all lenders now charge "the interest differential to the end of the term" instead of 3 months penalty. This can result in the lender requiring a very large penalty on top of the mortgage balance when you sell your home. Before you accept an offer to sell your property make sure you have a quote "in writing" from your financial institution outlining the cost of the penalty.
Zoning- You've found the perfect house, it's in your price range, the seller is agreeing to your closing date, leaving all of the appliances, lawn tractor, window coverings, etc....it all sounds terrific until you get to your lender and find out the property is zoned commercial or agricultural or institutional ...then the problems begin. Lenders aren't willing to put residential mortgages on properties that don't have residential zoning. In some cases the lender won't mortgage the property at all; or they may require a larger than normal down payment. Buyer beware...make sure you know what you are purchasing.
Betty Talbot-AMP Mortgage Agent #M08000481 CENTUM Omni Mortgage Corp #10321 282 Geneva St., St. Catharines, ON L2N 2E8 ph-905-937-2594 fax-905-871-9522