Our Blog

Sometimes you just need break
 August 23 2018     Posted by


Break your mortgage

 

It’s impossible to plan for many of the things that will happen in our lives, like job loss, illness, divorce, relocation, personal matter, or when much better mortgage rates become available.

The fact is, there are lots of reasons why it makes good financial sense to break your mortgage.

Generally, to break your mortgage, you can expect to pay a prepayment penalty: the greater of either

a) three months’ interest, or

b) the interest-rate differential (IRD).

With the IRD, your mortgage lender will want you to pay the equivalent of what they will lose by releasing you from your mortgage and lending the money at current rates.

Not all lenders calculate IRD the same way, and the differences can amount to thousands of dollars. It helps to know which lenders have the fairest prepayment penalties. With access to dozens of lenders – we’ve got that information at our fingertips.

Don’t let anyone tell you prepayment penalties are “all the same”. They’re not. If you ever need to get out of your mortgage out early, the right mortgage could save you thousands!

Should you have any questions, or are looking to review your options give me a call at 778-858-9848 or email me at shannonmayhew@invis.ca

 


Shannon Mayhew, Mortgage Broker


Bookmark and Share