Breakage cost
What does breaking the mortgage cost?
Variable mortgages typically charge three months' interest. Fixed mortgages charge the greater of three-month interest or an Interest Rate Differential — and the IRD math differs by lender.
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We shape the file to how Canada underwriters actually read it — closing math, lender appetite, and the small regional details that decide the approval.
Inputs
Result
$23,625
Estimated penalty — the greater of the two methods
- Three-month interest$5,670
- Interest Rate Differential$23,625
- Big-Six IRD uses the posted rate at funding, not the discounted rate you actually paid. The differential is usually larger.
Leverage moves
- Estimates are directional. Request a written penalty quote from the lender before deciding.
- Blend-and-extend can avoid a hard penalty — ask the lender for a blended-rate scenario.
- If you're inside the last 6 months of term, an "early renewal" usually beats breaking.
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Turn this number into a pre-approval file.
The math is the easy part. The approval hinges on how the file is packaged — income, down payment source, credit, and property notes underwriters actually read.