When Would I Have A Penalty?
When would I have a penalty?
Penalties may be avoidable with the right planning, the right mortgage and diligent tracking of prepayments.
You may be charged a penalty if you:
- Pay your mortgage off before for the maturity date
- Pay more than your prepayment privileges allow.
- Refinance your borrowing before your maturity date and break your term in the process.
- Transfer your mortgage to another financial institution before your maturity date.
- Early renew your mortgage and break your term before your maturity date and there is no cost-free right to do so in the mortgage.
Always consult your mortgage disclosure and/or your mortgage professional when deciding what product is right for you. Review your mortgage disclosure/ documentation to understand the terms and conditions that relate to your mortgage.