Worked example. A $420,000 balance at 5.34% with 31 months left, when the lender now offers 4.19% for a similar term: three months' interest is $5,607, the interest rate differential is $12,477, so the lender charges about $12,477. On a mortgage more than five years old, section 10 of the Interest Act caps the penalty at three months' interest.
Where this is used
In this centreCan I take my mortgage with me if I move, or move it to a different lender?In this centreWhat happens if I pay off or break my mortgage before the term ends?In this centreHow does a mortgage actually get removed from title once it is paid off?In this centreHow does a reverse mortgage work, and what happens to the property afterward?
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