There are many reasons that may necessitate renewing your mortgage before the end of term, regardless of the penalties:

  • Passing of your spouse
  • Divorce
  • Sale or transfer of your property
  • Unforeseen expenses
  • Critical repairs
  • Others

If a situation requires you to refinance before the end of your mortgage term, a penalty* will be incurred and you will be obliged to pay your current financial institution the higher of:

  • 3 months interest on your present mortgage
  • An Interest Rate Differential penalty (IRD).

Also, take into account that you may be charged administration fees by your current lender.

* Loss of interest sustained by your financial institution because of a breach of contract.

Firstly, confirm the penalty amount with your financial institution in writing. We will then be able to confirm with you if the penalty charge is less than the savings resulting from a more advantageous interest rate.

We encourage you to contact one of our mortgage brokers who will readily assist you through the renewal procedure. Keep in mind that a decrease in interest rates can substantially lower your end of term balance.

A considerable transaction volume translates into lower rates and better conditions for our clients.

Feel free to contact us today to evaluate all the available options.