MortgageBreak is a free online calculator that helps Canadian homeowners estimate the cost of breaking their mortgage and evaluate refinancing opportunities. We provide transparent calculations based on Bank of Canada data and industry-standard formulas.
Our calculator uses historical posted rates from the Bank of Canada to estimate your mortgage break penalty. The calculation considers:
When you break a fixed-rate mortgage, lenders typically charge the greater of:
Variable-rate mortgages typically only incur the three months interest penalty.
Homeowners consider breaking their mortgage for several reasons:
This calculator provides estimates only. Actual mortgage break penalties can vary significantly between lenders due to different calculation methods, posted rate histories, and contract terms. Some lenders use different posted rates, apply discounts differently, or have minimum penalty amounts. Always confirm penalty calculations directly with your lender before making any decisions.
Our calculator uses historical posted mortgage rates published by the Bank of Canada. This data is publicly available and represents the average rates offered by major Canadian chartered banks. We update our rate data periodically to ensure accuracy.
For questions about mortgage refinancing or to speak with a licensed mortgage professional, please use the contact form after calculating your results.