Early payout math
Renewal penalty & early payout calculator
Step through the exact cost to break your mortgage before renewal — penalty, discharge, legal, appraisal — netted against any cashback and against the interest you'd save on a better rate.
Start here · Canada
Get a Canada-ready pre-approval file, not a generic quote.
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
1Your current mortgage
2Lender & IRD inputs
3Fees & offsets
4New rate to compare against
Result
Total cost to break
$2,945
Penalty + fees $4,445 less cashback $1,500
- Prepayment penalty$2,595
- — 3-month interest$2,595
- — IRD$1,819
- Discharge + legal + appraisal + other$1,850
- Less cashback−$1,500
The math doesn't pencil out — the $2,945 to break exceeds the $0 you'd save on the lower rate. Wait for renewal, or ask the lender for a blend-and-extend that avoids the hard penalty.
- Big-Six IRD uses the posted rate at funding, not the discounted rate you actually paid. The differential is usually larger.
Leverage moves
- Always get the payout quote in writing — it's valid ~30 days and is the only number the lawyer uses at closing.
- Ask for a blend-and-extend before breaking. It rolls today's rate into your existing term without triggering IRD.
- If you're inside the last 120 days of your term, an early renewal beats breaking — no penalty, and you can still shop.
- Cashback offers usually come with clawback if you break the new mortgage — read the switch commitment carefully.
Ready when you are
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.