Paying Off Your Mortgage Early

When you sell your home, you may choose to pay off your mortgage entirely. Paying off your mortgage early can be a good choice if:

• You have a “fully open” mortgage with no prepayment charges
• Your remaining balance is small (Depending on your specific mortgage, however, you may have to pay a prepayment charge to discharge it early)
• You're not planning to buy again
• Current mortgage rates offer you little or no financial advantages

Paying off your mortgage early may NOT be a good choice if you have a “limited open” or “closed” mortgage in which only a part of the balance can be prepaid each year – usually 10%. On amounts above the 10% there may be a pre-payment charge levied. Our “should I break my fixed rate mortgage” calculator can help estimate the prepayment charges that may apply if you choose to pay off your mortgage early.

Talk to your banker. He or she can help you weigh the pros and cons of these choices, and possibly offer other attractive alternatives, including a portable mortgage.