I'm having a very bad mortgage experience as a first time home buyer... I had believed that the term of the mortgage started on the house purchase closing date, when the funds are advanced. So I expected the first mortgage payment to be 14 days later (bi-weekly installments).

The bank representative told me that was not possible, and that my first payment must be made "the second Friday after the next first of the month". A full 25 days after closing.

I then asked if this later starting date would affect the amount of interest owed, and the representative replied "no". This answer led me to believe that the scheduled mortgage payments, as laid out in the contract, would cover all interest accrued. Payments and starting date are set at the same time in the contract, so this makes sense.

Two weeks later, I received a letter from the bank telling me that I must make an interest adjustment payment to cover the interest accrued between the closing date and the first day that the scheduled payments cover (15 days worth), which was contrary to what the representative told me at signing.

Now, about 6 weeks after signing, I have received the mortgage general terms in the mail which describes "Interest adjustment date". This was not disclosed or explained to me at time of signing.

There were many other issues, so I had contacted the bank and the manager said he'll try going the "customer service route" to find some way to provide a rebate/compensation for my trouble, but he's stopped responding to me.

The other issues:

  1. the bank setup monthly payments, even though the contract specifies biweekly payments (this has been fixed),

  2. the bank keeps taking money from the wrong account. The contract authorizes the bank to take money relating to the mortgage from an external account (a different bank), but they keep taking money from my checking account with the bank in question, which they were not authorized to do. They continued doing so even after I notified them of the issue (a total of 3 unauthorized debits now). (hopefully they've fixed this by now... still waiting to see).

  3. The city told me that "[my bank] are currently listed as being responsible for making [property tax] payments.", but my bank never disclosed that to me.

Location: Ottawa, ON, Canada.

My questions:

  1. was that misrepresentation and what rights/recourse do I have?

  2. how can they force a delayed the start date (waiting for the next first of the month) and force me to accrue 15 days of additional interest when I wanted to start the payments immediately?

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