Calculate your prepayment charge and determine whether it is to your advantage—or disadvantage—to break your current closed mortgage.
This quick calculator will show you how much it may cost to prepay your mortgage, in part or in full.
Before getting started, please keep the following in mind:
- The tool estimates the prepayment charge (the cost to break the term of your mortgage) as of today’s date on fixed, variable or Ratecapper mortgages(1) having a closed term. Please contact us to find out your exact prepayment charge.
- The prepayment charge will be the greater of 3 months interest or interest for the remainder of the term on the amount prepaid calculated using the interest rate differential for fixed rate mortgages, and the 3 month interest charge for variable rate (at the contract rate) and Ratecapper mortgages (at the capped rate)
- To give you a more accurate estimate of your prepayment charge, you may need to have your original mortgage documentation on hand to answer some of the questions below.
Understanding Prepayment Charges
Prepayment charges are connected to mortgages where the interest term is ‘closed’. The closed term allows for prepayments up to 10% of the original mortgage balance. The prepayment restriction permits you to receive a lower rate than you would normally be able to receive if the term was ‘open’. When you prepay your mortgage above this limit you are modifying the terms of the contract (through faster repayment), resulting in the Bank incurring a cost for your mortgage.
Learn more about mortgage prepayment charges below, then continue to the calculator to estimate your prepayment charge.
How are prepayment charges calculated?
When do I have to pay a prepayment charge?
Fixed, Variable, & Ratecapper
Open and Closed Terms
Long and Short Terms
1 You cannot prepay your mortgage unless all your payments are up to date.