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

Homelife-Mural-copy

Cabbagetown Outdoor Gallery

Contributed by Gerald Michaud, Broker - ManagerHomeLife/Realty One Ltd., Brokerage -- Recently, we commissioned a piece of Art by artist Christian English-Pratt.  The Art mural being painted is on our … [Read More...]

doubletake-thrift-store-cabbagetown

Double Take has all the giftables

Contributed by Sharon -- YSM’s Double Take Thrift Store is here to help you get ready for the holidays! Our staff are excited to share sustainable and creative ways the Cabbagetown community can show … [Read More...]

homes-in-cabbagetown

KNOW THAT HOUSE

Contributed by  Maryam Hatam -- Hugh Neilson House: This yellow brick house (295 Carlton St.), with a beautiful wooden door was built in the Gothic Revival style in 1878 for Hugh Neilson, a Scottish … [Read More...]

St Anne’s Heart

Contributed by Anita Bostok --- Back in the 1980s, a friend dared Carlos Carreiro to take a dance class. Up for the challenge, he went to the class that he found enjoyable, but it was the attractive … [Read More...]

Tony Lafazanis – Personal Injury Lawyer

Are You a Victim of a Hit and Run?

Contributed by Tony Lafazanis – Personal Injury Lawyer --- Getting in a car accident, for any driver, cyclist or pedestrian can be a nightmare. Unfortunately, hit and run accidents occur far too … [Read More...]

bostok-hathaway-getting-to-know-you

GETTING TO KNOW YOU

Cabbagetown is a neighbourhood of beauty, heritage, cultural diversity and inclusion. We are Anita Bostok and Noman Hathaway and we’re proud to contribute this regular feature where you get to know … [Read More...]

shuter-street-Pharmacy

Shuter Street Pharmacy

Shuter St Pharmacy located at 290 Shuter, Corner Shuter and Parliament is now under new management. Our professional team is ready to serve the Cabbagetown and surrounding communities for all their … [Read More...]

Pollinator-Project_Dixon-hall

Pollinator Grant Update

In 2019, staff from the Rooming House Project applied for the Pollinator Grant with help from local tenants who were interested in the project. Together staff and clients completed the application, … [Read More...]

greenthumbs

Green Thumbs Pumpkin Project

Green Thumbs Growing Kids is a local charity actively creating school food gardens in order to connect children to food and their environment. For 21 years we have been at the forefront of … [Read More...]

You’re just the right kind of wrong!

Contributed by Debjani Sinha Do you hear this background noise in your head? “You’re too loud!” “You won’t make it.” “They don’t like you.” “You look bloated.” “It’s all your fault.” and … [Read More...]

enough1

Wish I Could

Dub J announces new single with all-star cast to speak out against gun violence. Canadian producer Dub J unifies a Toronto A-List roster of JRDN, Maestro Fresh Wes, JD Era, Bizz … [Read More...]