Last updated: March 28, 2022
This tool estimates what penalty you would pay on your mortgage(s),which usually occurs if you are trying to sell a property or want to switch financing options prior to the mortgage maturing.
It’s important to confirm this penalty with your lender, since the calculation methodologies can differ slightly and the figures calculated below should only serve as an estimate. All details outlined below can be found in your mortgage commitment letter.
We built this mortgage penalty calculator to help you get an estimate of how much you will need to pay if you decide to break your existing mortgage before it matures. This will also allow you to know whether or not it will be beneficial to switch mortgages.
To make this calculator simple to use, we’ve filled in some of the fields already. You can modify each field with your own information to calculate your mortgage penalty amount. Try changing different fields to see how it increases or decreases your penalty amount.
Lender: Select the lender of your existing mortgage
Mortgage principal: This is the amount of money you borrow when you first take out your home loan.
Mortgage rate: Include your current mortgage rate.
Mortgage rate type: Mortgages are either fixed or variable. You can read more about the differences between fixed mortgages and variable mortgages.
Original mortgage term: This is the length of time that the mortgage agreement at your agreed interest rate is in effect.
Maturity date: This is the date that your loan term ends. You will have the choice of paying off, refinancing or renewing your mortgage.
Payment frequency: The most common payment frequency is monthly, however you can change the frequency based on your preference of managing your household budget.
Mortgage payment: This is the amount you are charged for each payment.
Yes. Our mortgage penalty calculator is completely free to use, along with all of our other calculators, rate comparison charts and articles.