If you wish to repay your mortgage in part or in full before its maturity date, you may be required to pay a penalty as indicated in the “Cost of Borrowing Disclosure Statement”, which you received when your mortgage was issued, modified, renewed or refinanced, whichever is latest.
There are two types of penalties: the penalty associated with the mortgage and the penalty associated with the promotion. The penalty associated with the mortgage is calculated according the procedure described in the “Cost of Borrowing Disclosure Statement”.
The penalty associated with the promotion is calculated according to the procedure described in the “Mortgage Promotion Agreement”, which could include, for example, cashbacks or other fees.
This calculator can estimate the amount of the penalty for you.
Before starting, make sure you have the following documents on hand:
Your most recent "Cost of Borrowing Disclosure Statement" that contains the following information:
- The mortgage type
- The term of the loan
- The interest rate
- The posted rate (in the case of a fixed rate)
- The initial amount of the loan
Your mortgage balance
- You can get it through LBCDirect or by consulting your latest Super Statement.
Your "Mortgage Promotion Agreement" (if applicable), which contains the following information:
- The amount of the promotion
- The repayment method (total or pro-rata)
The calculator cannot estimate the penalty if:
- Your property has six units or more;
- You have an adjustable-rate mortgage
No penalty is applicable to a prepayment if:
- Your mortgage is scheduled to mature within the next 30 days
- The prepayment amount is less than or equal to the mortgage prepayment privilege of 15%, as per the conditions described in your "Cost of Borrowing Disclosure Statement" (for a closed term loan)
- Your loan is open term.