Get an accurate estimate of what it will cost to break your mortgage today using real Bank of Canada rates.
See exactly how much you could save each month if you refinance to a lower rate.
Know exactly how many months it takes before the savings offset your penalty cost.
The part your lender never explains clearly
When you break your mortgage early in Canada, your lender charges a penalty. For variable rate mortgages, this is usually three months of interest. For fixed rate mortgages, it is either three months of interest or the Interest Rate Differential (IRD), whichever is higher.
The Interest Rate Differential is difficult for homeowners to estimate because it depends on historical posted rates from when the mortgage was signed and how lenders apply the original rate discount. Most online calculators ignore this complexity.
This calculator uses official Bank of Canada posted rate history to estimate your penalty using the same logic lenders use.
Variable rate mortgages pay three months of interest based on your current balance and rate.
Fixed rate mortgages pay the higher of three months interest or the Interest Rate Differential.
We use Bank of Canada data from when you signed to estimate your real penalty.
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