How much does it cost to break my mortgage before my term is ove

Posted by PropertySold on Jan. 09, 2011

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How much does it cost to break my mortgage before your term has finished in Canada. People often sign a mortgage agreement for 3-10 years and then they might be required to sell their home and end their mortgage before the mortgage has expired. If you signed a closed mortgage, then ending your mortgage before the end of your term will cost you money. In Canada, most banks require a mortgagor (the borrower) to pay three months interest to break your mortgage. However there might be other fees to pay as well. Sometimes if you have agreed to pay 5% interested (for example) on your mortgage and now interest rates are at 3%, you could be required to pay an interest rate differential penalty. Depending on the size of your mortgage, this could be thousands of dollars. If you have questions about the costs involved in breaking your mortgage, you should check your mortgage contract and call the company that provided the mortgage before breaking your mortgage. Once you know how much it will cost to break your mortgag

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