Question:

In December I received a call from TD E-Bank asking me to renew my mortgage. I said I wanted to shop around. They said ok but they would hold a rate for me. I found better rate and signed papers elsewhere. Now TD is saying I renewed with them for 5 years at 5.25% over the phone and they have a taped conversation saying I agreed to that. They have the cheque to clear my mortgage from Investors Group but they haven't cashed it. Nor have they taken any mortgage payments out of my account since Dec. 5, 2003. My husband never agreed to renew and TD is saying because of the nature of the call they didn't need his consent! Am I stuck now? Isn't this against the Canada Mortgage Act? I feel I am being railroaded into a contract I didn't want in the first place. Do I have to now start legal action?

Answer:

At the time of this writing, we are offing 5 year rates as low as 4.85% for quick closings so the TD rate is not very attractive.
I would contact the Ombudsman's office at the TD bank and make a formal complaint. If you specifically told them that you wanted to shop around and would not be renewing, that should be on the tape they are holding and you should not be bound to a renewal agreement with them. If you get no response from the bank, contact your solicitor who can expedite matters for you. The good news is it is possible the rates may come down even more while you go through the process.
John Lozinski

Answered By: John Lozinski

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