HOMEOWNER RESEARCH TOOL

Mortgage Penalty Calculator

Estimate the potential cost of breaking a Canadian mortgage before the end of its term. Compare the three-month-interest method with a simplified Interest Rate Differential estimate.

Your Mortgage

Mortgage Type
Mortgage Details
$
%
$
Use the full outstanding balance if you plan to discharge the entire mortgage.
Interest Rate Differential
%
Enter the lender's comparison rate for a mortgage term closest to your remaining term.
%
Optional. Some lenders incorporate the original discount from their posted rate.
Estimated Mortgage Penalty
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This is an educational estimate. Your lender's actual prepayment charge may be materially different.
Mortgage Balance —
Amount Being Prepaid —
Months Remaining —
Mortgage Type —
3 Months Interest —
Simplified IRD —
Enter your mortgage details to estimate the potential penalty.

Three Months' Interest

A common method estimates three months of interest on the amount being prepaid using your current mortgage rate. Variable-rate mortgages are often subject to a penalty based on a specified number of months of interest, but the exact contract terms must be confirmed with the lender.

Interest Rate Differential

IRD generally compares your mortgage interest rate with a rate associated with the remaining term of your mortgage. However, lenders may use different comparison rates, posted-rate discounts, present-value calculations and other methods. This calculator therefore provides only a simplified IRD estimate.

Important: Mortgage prepayment charges depend on the terms of your individual mortgage contract and the calculation methodology used by your lender. This calculator provides a general estimate only and should not be relied upon as an actual mortgage payout statement. Contact your lender for a current, written prepayment-charge quote before selling, refinancing, transferring or discharging a mortgage. Other costs such as discharge fees, administration charges, cashback repayment or legal costs may also apply.