Background: a refinancing was negotiated with my current lender - we did a blended rate of 5.48% over 5 yrs. The new mortgage replaced my old mortgage and b/c it was done as a blend no prepayment penalty was applied. I signed a commitment letter agreeing to this.
Two weeks later I meet with a lawyer supplied by the financing company to sign the actual mortgage contract papers. The terms presented to me are now 3.99% over 4 yrs ( all the same amortization period) and again if XYZ mortgage replaces ABC mortgage there is no prepayment penalty - which it did.
I obviously signed for the much better rate but now the bank is refusing to honor the actual mortgage contract and is stating the commitment letter should take precedence as that is what was actually agreed to.
Thoughts on my legal position given the above ?
