u/Seebeeeseh

Curious if this is common practice or not.

My old bank mortgage expired on 01May2026.

I didn't renew before then. Was still negotiating numbers with other banks and with current one. (Simplii).

Prior to 01 May, I was told by Simplii that upon maturity, my mortgage would be simply rolled into a 6 month high interest mortgage until a new deal is worked out with simplii or another bank.

I decided to go with RBC after May 1st and Simpliii rejected the buyout.

I called them, and they said the auto roll over isn't an open mortgage, and to get out of it i would need to sign a new 6 month open fixed or variable and then cancel and pay 3 months of interest penalty to the tune of roughly $3500 bucks.

Is this normal? I've talked to two other mortgage specialists and they have not heard of this.

Feels like they purposely set me up to hold hostage.

Any advice is appreciated.