- Considering changing your mortgage?
- How can I accelerate the pay down of my mortgage without incurring a prepayment charge?
- What is a mortgage prepayment charge?
- How do I calculate my prepayment charge?
- What is the impact of rising or falling interest rates on my prepayment charge?
- If rates are decreasing, how do I know if I can benefit from paying off my mortgage early?
- Prepayment charge calculation examples
- Prepayment charge calculator
What is the impact of rising or falling interest rates on my prepayment charge?
Generally, if interest rates have declined since the date of your Loan Approval, your IRD prepayment charge will be higher than it would be if interest rates have increased or remained the same. Similarly, your IRD prepayment charge should be lower as you get closer to the maturity date of your mortgage term, provided that interest rates do not change.
If interest rates are declining, you should expect that your IRD prepayment charge will increase, even though there are fewer months remaining on the term of your mortgage.
If you have questions about your specific situation or would like to obtain written confirmation of your actual mortgage prepayment charge, which will be valid for 30 days after it is issued, please call our Mortgage Servicing Centre at 1-800-328-6488. In the province of Québec, call 1-800-565-2035.