Calculate your prepayment charge and determine whether it is to your advantage or disadvantage break your current closed mortgage.
This quick calculator will show you how much it will cost to your mortgage, in part or in full.
Before getting started, please keep the following in mind:
- The tool estimates the prepayment charge as of today’s date on fixed, variable or Rate capper mortgages (1) having a closed term. Please contact us to find out your exact prepayment charge.
- The prepayment will be charged The Greater of 3 months interest or interest for the remainder of the term on the amount prepaid Calculated using the interest rate differential for fixed rate mortgages, and the 3-month-old interest rate (at the contract rate) and Ratecapper mortgages (at the capped rate)
- To give you a more accurate estimate of your prepayment charge, you may need to have your original mortgage.
Understanding Prepayment Charges
Prepayment charges are connected to mortgages where the interest term is closed. The closed term allows for prepayments up to 10% of the original mortgage balance. The prepayment restriction can not be more easily received than it would have been. When you pay less than your limit, you are in the process of making the most of the contract (resulting in a higher rate of repayment).
Learn more about mortgage prepayment charges below, then continue to the calculator to estimate your prepayment charge.
How are prepaid expenses calculated?
Prepayment charges are one of the following: For fixed rate mortgages, the prepayment will be the greater of 3 months interest or interest rate. For variable rate and Ratecapper mortgages, it is 3 months interest.
- Understanding Mortgage Prepayment Charges
When do I have to pay a prepaid charge?
Generally, there are three situations when you would incur prepayment charges:
- when you prepay an amount greater than the annual prepayment option of 10%
- when you refinance your mortgage before your maturity date
- when you move to your financial institution
- Refinance Your Mortgage
- Making Mortgage Main Prepayments
Fixed and Variable
From the security of a fixed rate mortgage to the flexibility of a variable rate mortgage, you have several choices when it comes to interest rates. The interest rate for a fixed rate mortgage is locked in for the full term of the mortgage. A variable rate mortgage provides you with the flexibility to take out a mortgage. Alternatively, the Task Penny Homeline Plan allows you to split your mortgage and enjoy the benefits of both. The variable portion allows you to take advantage of potential long-term savings, while the rate increases.
- Variable and Fixed Rate Mortgages Open and Closed Terms
Open term mortgages can be appealing if you are planning to pay off your mortgage in the near future. They can be repaid in their own right or at any time without prepayment charges.
Closed term mortgages offer you the ability to save on interest and pay off your mortgage faster. You will pay a premium if you wish to pay your interest rate or pay a share of the full balance of your mortgage before the end of its term.
- Closed, Open and Convertible Mortgages
Long and Short Terms
Long term mortgages are those 3 years or longer. Short term mortgages generally have an interest of less than 3 years. With a longer term mortgage, you may not have the flexibility to lower your interest rate.