Penalties can happen when you pay off a mortgage sooner than you were supposed to and can vary significantly from one mortgage to the next. Around here, we call it the Big Bad Wolf.
For variable mortgages, penalties will usually be about 3 months interest.
For fixed mortgages, penalties will be 3 months interest or the outcome of the IRD (interest rate differential) calculation, whichever is larger.
To fully understand your penalties and how they may effect you, get in touch with one of our mortgage professionals.
