Calculating mortgage prepayment penalties

Catching up on mortgage news today. I read that the majority of fixed rate mortgage holders who take out 5 year mortgages will terminate their mortgages prior to the term ending. In many cases, there will be no fees associated with terminating the mortgage, but if the reason for terminating the mortgage is because you sold your home, then significant penalties may apply.

To calculate just how big a hit you might have to take when selling your home. Scroll down and click on the name of the bank that currently holds your mortgage and follow the online instructions.

Note: To accurately calculate the penality. You will need to enter the discount rate which you received when originating your mortgage. If you don't know the actual percentage? I suggest you call your bank to find out, or enter 1.4% which is a common discount rate.

Bank of Montreal
Royal Bank
TD Canada Trust
National Bank of Canada

Author: Robert Kirkwood
Posted: January 11, 2018

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