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

Photo Courtesy of Artistic Gardens

Outdoors at Last!

Contributed by Kathy Flaxman. Deck, patio, back garden, balcony – everyone with access to outdoors is making the most of the warm weather.  Now, we have a chance to feel free and normal and experience … [Read More...]

bh2

GETTING TO KNOW YOU – part 2

Contributed by Anita Bostok and Norman Hathaway. Cabbagetown is a neighbourhood of beauty, heritage, cultural diversity and inclusion. Anita and Noman are proud to contribute this regular feature … [Read More...]

Cabbagetown_houses

Summer in Cabbagetown

Contributed by Gerald Michaud, Broker - Manager - HomeLife/Realty One Ltd., Brokerage. I love Cabbagetown in the summer. It’s a beautiful and family friendly neighbourhood with delightful surprises at … [Read More...]

money-andre-bermon

The end of cash?

Contributed by Andre Bermon, Publisher of the bridge. When was the last time you paid with money? Was it before the pandemic? Then you are not alone. It’s no surprise that societal changes caused by … [Read More...]

Meal-program-for-residentsx

The Corner during the Pandemic

Contributed by Aravind Joseph  (The Corner). The Corner is an organic community hub in SJT where residents and service providers come together seamlessly to collaborate, innovate and build community.  … [Read More...]

NedHanlan-parliament-street-news

Ned Hanlan 1855 – 1908

Contributed from the Cabbagetown People Website - www.cabbagetownpeople.ca Champion Oarsman – Ned Hanlan His resting place can be found in the Necropolis @ Section C, Lot 40   Ned’s … [Read More...]

416project4

The 416 PROJECT

Contributed by artist Jorge Molina. It’s been four years since Canadian artist Jorge Molina conceived of The 416 Project, installing 416 unique canvases throughout the many neighbourhoods of Toronto, … [Read More...]

Six Feet Apart

A Song written and contributed by Duncan Fremlin, RE/MAX Hallmark Realty Ltd.duncan@morethanahome.ca When the pandemic hit, my work as a Realtor wasn’t affected since it was declared an essential … [Read More...]

spring-cover

Spring 2020 Issue

SO LONG SARAH! Sarah Cook, our publisher for the last two years, has taken on a new opportunity. Sarah will infused some new life into the Parliament Street News, got the Instagram going and developed … [Read More...]

randy-brown-parliament-Streeet-news

The Excellent Festival

Over the past 31 years, Randy Brown and 25 members of the Cabbagetown Art & Crafts (CA&C), which is an association of resident artists, have organized the sale in Riverdale Park during the … [Read More...]

bob-mcniven

Lives Lived – Bob McNiven – 68

Contributed by Duncan Fremlin -- Bob McNiven, musician and singer,  harmonizer, songwriter and incurable romantic was born in Pennsylvania on May 24, 1952 and died at home in Toronto on May 4, 2020 of … [Read More...]

bh2

GETTING TO KNOW YOU

Contributed by Anita Bostok & Norman Hathaway -- Cabbagetown is a neighbourhood of beauty, heritage, cultural diversity and inclusion. Anita and Noman are proud to contribute this regular feature … [Read More...]