Mortgage penalty calculator

Enter the date you entered into your original (existing) mortgage contract.
The balance of your original (existing) mortgage the day you are planning to refinance. I don't know this, help me estimate.
Enter the current mortgage payment you make whether semi-monthly, monthly or semi-monthly. I don't know this, help me estimate. Enter the frequency with which you currently make mortgage payments: monthly, semi-monthly or yearly.
Enter the balance of your mortgage on the initial signing date of your contract. Enter the amortization of your mortgage on the initial signing date of your contract.
Which mortgage lender is providing your current (existing) mortgage contract?
The mortgage term is the amount of time a homebuyer commits to the rules, conditions and interest rate agreed upon with the lender. The term can be anywhere from six months to 10 years, with a 5-year mortgage term being the most common duration.
Is your current mortgage rate variable or fixed?
Enter the mortgage rate you are currently paying on your existing mortgage rate.
The discount you received when signing your contract. For example if the posted rate at the time was 5.0% and you ended up paying 3.0%, your discount would have been 2%. I don't know this, help me estimate.

Based on your inputs we've estimated your mortgage payment and remaining mortgage. Adjust these amounts if you've taken advantage of your prepayment options.


We’ve estimated your current mortgage payment based on your inputs above. Please adjust if you’ve taken advantage of your prepayment options. The balance of your original (existing) mortgage the day you are planning to refinance.

Your estimated mortgage penalty is $-.

3 months' interest penalty

0%
x
$- outstanding mortgage balance
x
3/12
=
0.08 three month's interest penalty

0.00 mortgage break penalty
+
0.00 lender discharge fees
=
0.00 total fee to break mortgage

Interest rate differential (IRD) penalty

(
0%
-
0%
) /
12 convert to monthly interest rate
=
0.00 ird factor

0.00 ird factor
x
$- outstanding mortgage balance
x
12 months remaining in term
=
0.08 interest rate differential

0.00 mortgage break penalty
+
0.00 lender discharge fees
=
0.00 total fee to break mortgage

The mortgage is open and you will not incur a penalty to break it.

*Disclaimer: Please note that the calculation results are estimates based on our most up-to-date information sourced from lenders’ publicly stated methodology and first-hand accounts. This information is subject to change. The results do not include special offers, such as cash back incentives, or any discharge, registration, reinvestment or transfer fees you may also incur. For an exact penalty calculation, contact your lender directly.

ATB Financial: 1-800-332-8383
BMO: 1-877-225-5266
CIBC: 1-888-264-6843
First National: 1-888-488-0794
FirstLine: 1-800-970-0700
Home Trust: 1-877-903-2133
HSBC: 1-888-310-4722
ING DIRECT Canada: 1-866-700-9836
Laurentian: 1-800-252-1846

MacQuarie: 1-877-462-3788
MCAP: 1-800-265-2624
National Bank: 1-888-483-5628
PC Financial: 1-888-236-6362
RBC: 1-800-769-2511
Resmor/RMG: 1-866-809-5800
Scotiabank: 1-888-990-9923
TD: 1-800-722-3098


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Mortgage Penalty Calculator

When breaking your mortgage contract early, usually because of a refinance or the sale of your home, you will unfortunately have to pay your lender a penalty called a prepayment penalty. The amount you pay will depend on a variety of factors including the day you signed your original mortgage contract, the term of that contract and your existing mortgage balance, rate type and mortgage rate.

One of the biggest drivers of your mortgage penalty is whether you have a variable or fixed mortgage rate. Fixed rate holders pay the greater of interest rate differential or three months interest, while variable rate holders pay just three months interest.

RateHub.ca’s mortgage penalty calculator captures your required inputs, determines your prepayment penalty and shows you the corresponding calculations for the curious mathematicians out there. For a more detailed article on determining your penalty, please visit our costs of refinance page.


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