Mortgage Prepayment Penalty Calculator

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:

  • 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.


By using the calculator, the Bank assumes the following: (i) the interest rate remains constant throughout the amortization period; and (ii) the payment schedule selected is maintained with no additional payments or skipped payments.

The Bank does not make any guarantees (implied or express) or representations regarding any information or results from the use of this calculator. The Bank is not liable for any decision you make based on the results of the calculator; the Bank strongly advises not to rely solely on this information or result when making any financial decision(s). The calculation is based on the accuracy of the data you have entered. Refer to your mortgage documents to find the information you need for this calculator. The calculation is an approximation and for illustrative purposes only and is not intended to substitute financial advice. For financial advice please speak to a financial professional. The calculation(s) presented may differ than the actual calculation(s) on our system. Please call customer service for more information at 1-866-884-9407 .