Breaking Your Mortgage Early
Breaking a closed mortgage before the term ends triggers a prepayment penalty — either 3 months interest or the Interest Rate Differential (IRD), whichever is greater. We show you how to estimate the penalty and when it's still worth breaking.
What you will learn
- When refinancing makes financial sense (and when it does not)
- How to calculate the break-even point after penalties
- Prepayment penalties explained — fixed vs variable differences
- Step-by-step guide to the refinancing process
Overview
Breaking a closed mortgage before the term ends triggers a prepayment penalty — either 3 months interest or the Interest Rate Differential (IRD), whichever is greater. We show you how to estimate the penalty and when it's still worth breaking. This guide covers everything Canadian homebuyers and homeowners need to know — from the basics to the strategies that can save you thousands over the life of your mortgage.
Our mortgage experts have analyzed data from hundreds of lenders and thousands of Canadian mortgage transactions to give you the most accurate, up-to-date guidance. Whether you are just starting to research or ready to make a decision, this guide will give you the clarity to move forward with confidence.
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Every mortgage situation is different. A licensed broker can apply this guidance to your specific numbers — for free.
Full Guide Coming Soon
Our editorial team is finishing this guide. It will include step-by-step walkthroughs, worked examples with real Canadian numbers, lender comparisons, and strategies tailored to your situation. Check back soon — or use the form to get expert advice now.
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Licensed brokers can apply this guidance to your specific situation — free.