The cost of breaking your mortgage

Contributed by Marshall Tully

Most homeowners should expect to pay a penalty if they want to break their mortgage to get a better rate, sell their home, pay down the mortgage principal more than your prepayment allows or for a complete refinance.  Homeowners in 5 year fixed mortgages often look to break their mortgage during their 3rd year for debt consolidation or to accommodate changing life circumstances.  The penalty to break a mortgage is typically the greater of three months’ interest, or the interest-rate differential (IRD).  With the IRD, your mortgage lender will want you to pay the equivalent of what they will lose by releasing you from your mortgage and lending the money at current rates.  Unfortunately, not all lenders calculate IRD the same way so you should always get the actual penalty from your lender.  Check your lender’s website for their prepayment penalty calculator.   If you’re considering breaking your mortgage talk to a mortgage agent as they can perform a detailed, no obligation cost analysis for you. If you’re shopping for a new home, talk to an agent as they can present you with lenders whose penalties are much lower than the big banks. 

My business is based on referrals. If you know someone I can help, please feel free to forward my contact information to them.

Marshall Tully | Mortgage Agent, 416.561.5432
www.tullymortgages.ca

TwitterGoogle+FacebookLinkedInDiggStumbleUponBlogger PostDeliciousShare

Other News

Beer-Batter-fish&Chips

Beer Batter Fish N’ Chips

The Irv opened its doors at 195 Carlton St. on March 1st 2014 with a tribute to Bob Irvine the man they called Irv. When opening The Irv we wanted to concentrate on fresh local food and great beer … [Read More...]

Cabbagetown-movie-in-the-park

Cabbagetown Movie In The Park

Stephen-Thomas Maciejowski Grab your picnic blanket and get ready for Cabbagetown Movie In The Park returning for its 3rd annual installment presented by the Cabbagetown BIA on Wednesday July 18th … [Read More...]

Buds-and-blossioms

Buds & Blossoms is Growing!

Contributed by Linnea Obern Hi friends! We are Buds & Blossoms, a family activity studio serving Cabbagetown with a diverse selection of educational and entertaining classes and events for … [Read More...]

garden-tour-Poster-8

Hidden Gardens & Private Spaces

This unique tour continues to draw people from across Toronto and beyond. June 3 will be the 11th time we have had the privilege of peeking into the hidden gardens.  A self-guided tour of these … [Read More...]

Kim-Ezeard-ad

Construction, Construction Everywhere!

Contributed by Kimberley Ezeard Cabbagetown was not exempt from what seemed like the never ending winter, and now we enter the season of never ending construction and traffic detour… “Why”, you ask? … [Read More...]

green thumbs

Green Thumbs

Photo & article contributed by Lenka Gazova – Lenka Life Photography *VIP   Green Thumbs offers food growing and environmental education programs in 4 inner-city schools and 2 park … [Read More...]

Meredith-BIO-Ad

Meredith Cartwright

Meredith Cartwright is an accomplished human rights lawyer, businesswoman and advocate for Toronto Centre. Meredith earned her law degree from Queen’s University and holds a Master’s degree from … [Read More...]

FIretruck-cabbagetown

FUN IN THE SUN…

Contributed by Sarah Cook- Publisher. Fish, Festivals and Firetrucks… oh my!   Weather you prefer Fahrenheit or Celsius, it is climbing! It’s going to be a hot one this year, Summer 2018 is … [Read More...]

David-MORRIS-photo-for-article-PSN-June-18

David Morris

David Morris believes real, progressive change starts with opportunity, connection, and community. A belief in community underscores everything David does. David understands Toronto Centre’s biggest … [Read More...]

The Cabbagetown Youth Centre

Contributed by Sharmini Fernando Candidate The Cabbagetown youth Centre has provided free or close to free recreation, pre-school, summer camp, after-school and youth focused programs for over two … [Read More...]

Body-Karma

Are they really listening?!

Contributed by Jennifer Shearer The way we talk about our bodies can have an affect on the little humans in our lives…!   The journey to self acceptance is a long one, which can lead to a … [Read More...]