Mortgage Penalty Calculator

Estimate for Canadian contracts charging the greater of three months interest and simple IRD, as in FCAC's example. Enter principal after permitted penalty-free prepayments and comparison rates after contractual posted-rate/discount adjustments. Excludes open mortgages, discounted-cash-flow IRD and other contracts. Lender quote determines the actual charge.

Estimate for Canadian contracts charging the greater of three months interest and simple IRD, as in FCAC's example. Enter principal after permitted penalty-free prepayments and comparison rates after contractual posted-rate/discount adjustments. Excludes open mortgages, discounted-cash-flow IRD and other contracts. Lender quote determines the actual charge.

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Result

Enter your values and run the tool to see your result.

How to use this tool

Check the units, enter your values, and run the tool. Results follow the assumptions and method below.

Calculation method

Three months interestbalance*interestRate/100/4
Simple interest rate differentialbalance*max(0,contractRate-replacementRate)/100*months/12
Simple-model estimated penaltymax(balance*interestRate/100/4,balance*max(0,contractRate-replacementRate)/100*months/12)+admin

References