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Canadian Mortgage Break Penalty Estimator

Breaking a fixed-rate mortgage in Canada early usually incurs a penalty of the greater of 3 months' interest or the Interest Rate Differential (IRD). Variable-rate mortgages typically only charge 3 months' interest. Use this tool to estimate your potential penalty.

Mortgage Details

Estimated Penalty

Estimated Total Penalty

$0

3 Months' Interest

$0

Standard penalty for variable rates, or minimum penalty for fixed rates.

Interest Rate Differential (IRD)

$0

Calculated based on the difference between your rate and the current market rate for the remaining term.

How We Calculate This

3 Months' Interest: (Mortgage Balance × Interest Rate) ÷ 12 × 3.

Interest Rate Differential (IRD): (Mortgage Balance × (Your Rate - Current Market Rate) × Months Remaining) ÷ 12.

Disclaimer: This calculator provides an estimate. Real penalty calculations vary significantly by lender. Some lenders use a"Posted Rate" or"Discount Rate" to calculate the IRD which can make the penalty much higher than expected. Always contact your lender directly for an exact payout statement before breaking a mortgage.

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