The Penalty Killer

Roughly 2 out of 3 Canadians break their mortgage mid-term for a variety of reasons: lower rates, home sale, the desire or need to refinance, divorce, and so on. Traditional Canadian mortgages are Closed from prepayment, meaning you’ll need to pay a penalty to break it before the term is up for renewal.

A variable mortgage has a predictable prepayment penalty; however, breaking a fixed-rate mortgage mid-term can be a surprisingly costly affair. To complicate this more, the difference of a single month could mean thousands of dollars in penalties if you don’t have the right guidance. That’s where we step in – as your behind-the-scenes expert in analyzing, timing and mitigating fixed mortgage payout penalties.

Combining best-in-industry technology with some information you collect from your current lender, we’ll estimate the cost-benefit of breaking your mortgage now. ALSO, we’ll point out whether & when there’s a far more financially opportune time to make the break. Again, we’ve seen instances in which hurrying up OR waiting an extra month can save thousands.

Think of it as having a personal consultant who ensures that when you decide to break your mortgage, you’re mitigating the cost. We translate complex lender penalty formulae into clear, actionable insights – so you have a far better idea of whether/when to make your move.

This service goes without saying for our existing clients; but if we’ve never met, simply reach out and we’ll describe your next steps. In the meantime, a primer on Canadian mortgage penalties below…