← All calculators
What would it cost to break your mortgage early?
Net position
-$2,993
Savings over the remaining term minus the penalty.
Three months' interest
$5,500
Penalty (low to high)
$8,480 to $8,480
Monthly savings, new rate
$229
Savings over remaining term
$5,487
A fairly calculated rate differential is designed to leave the lender indifferent to you leaving, which is exactly why breaking for rate alone often cancels itself out.
Only your lender can supply the exact penalty figure. This is an estimate built from the public formula.
Ask about a blend-and-extend, mixing your current rate with today's into a fresh term. It usually carries no penalty at all.
Using your annual prepayment privilege before breaking shrinks the balance the penalty is calculated on.
See every line
The penalty
Three months' interest$5,500
Interest rate differential (low)$8,480
Interest rate differential (high)$8,480
The trade-off
Monthly savings at new rate$229
Months left in term24
Savings over remaining term$5,487
What this assumed
Mortgage typeFixed
Lender typeCredit union / broker lender
Posted-rate premium modeled+1.60% over contract rate
Want a person to look at it?
These figures use one rate and general guidelines. A licensed mortgage agent can tell you which lenders would actually take your file, and what leaving a mortgage early looks like for you specifically.
Optional. Free either way. Nothing beyond this submission is stored, it goes to one licensed agent — not a list — and every rule this site uses is published.
What this number means
Fixed mortgages are charged the greater of three months' interest or the rate differential; variable mortgages only ever pay three months' interest. The gap between your rate and today's rate is what makes the penalty rise or fall.