Prepaying without a prepayment charge.
If you choose to pay out your mortgage prior to the maturity date, prepayment charges may apply. However, there are ways that you can avoid prepayment charges.
Prepay within your privilege allowance
Charges do not apply if you stay within your applicable prepayment privileges as set out in your mortgage. These may include an allotted lump sum payment privilege, a double up privilege or the ability to increase your payment by only 15%* each anniversary year.
Pay out on your maturity date
When you repay your mortgage in full, on your maturity date, prepayment charges will not apply because the mortgage term has ended and prepayment restrictions no longer apply. Once your mortgage reaches its maturity date, you can pay the remaining balance in full, renew, or refinance without incurring a prepayment charge.
Consider mortgage assumption or port your mortgage
If someone qualifies to assume your mortgage before it matures, or if you qualify to port your mortgage to a new home, prepayment charges may not apply.**
**Terms, conditions, and qualification requirements apply.
Important things to know about prepayment charges
- A smaller balance can help to reduce prepayment charges. You can lower your balance by using your prepayment privileges.
- Prepayment charges can change without notice based on certain factors including:
- Interest rates – changes in the prime rate affect adjustable rate mortgages and changes in posted rates can impact penalties calculated based on the Interest Rate Differential (IRD).
- Time remaining in your term – the time left in your term determines the rate used in IRD calculations (less time means a lower penalty).
- Loan balance – what you have left owing (including missed payments or unpaid fees).
Additional resources
If you choose to pay more than your prepayment privileges allow, you may face additional charges. Learn when and how these charges may apply to you.
Rates are for single-family residential mortgages. Actual rates may vary. Please contact First National toll-free at 1.888.670.2111, send us a message through your My Mortgage account or speak with your mortgage broker for further information. Rates are subject to change without notice. E. & O. E.
Prepayment Calculator
Estimate your prepayment charges based on how much you choose to prepay. Log in to My Mortgage® to access the calculator or contact us at 1-888-488-0794.
Prepayment Calculator