The Cost of
Freedom.
Breaking a mortgage early triggers penalties. Use our calculator to determine if refinancing at a lower rate saves you more than the penalty costs.
Accurate IRD Logic (Fixed Rates)
3-Month Interest Check (Variable)
Penalty Estimator
Banks charge a fee to break your contract early. Calculate the damage below.
Current posted rate for similar term.
Estimated Break Fee
$0
Calculation:
Don't pay this out of pocket. We can usually add this to your new mortgage.
Strategy: Refinance & SaveHow to lower your penalty
Banks don't tell you this, but penalties are negotiable or avoidable.
The "Blend & Extend"
Instead of breaking the mortgage, ask your lender to "blend" your current rate with the new lower rate. This usually triggers zero penalty because you stay with the same bank.
Port Your Mortgage
Moving houses? You can move your existing mortgage to the new property. You avoid the penalty completely, and only pay the new rate on any *extra* money you borrow.
Common Questions
What is the "Posted Rate" vs "Discounted Rate"?
Banks use an artificially high "Posted Rate" (e.g., 6.54%) to calculate penalties, even if your actual rate is 4.50%. This creates a massive IRD penalty. This is why "Big Bank" fixed mortgages are risky.
Can I write off the penalty on my taxes?
If the property is an Investment Property (rental), yes, the penalty is generally tax-deductible. For your primary residence, unfortunately, it is not.
Is it worth breaking?
Sometimes paying a $5,000 penalty saves you $15,000 in interest over the next 3 years. Let us run the math for you.
Get A Free Penalty Audit
We verify the bank's math.