
Avoiding the Mortgage Refinancing Penalty
If you would like to refinance your mortgage without the penalty payment, RealEstateLawyers.ca has the answer.
Three Months Interest
The penalty is the equivalent of three months of interest on your current mortgage principal. This penalty can apply to both variable and fixed mortgages.
How to calculate it:
\[
\begin{bmatrix}
\frac{Mortgage\,Principle*Original\,Interest\,Rate}{12}
\end{bmatrix}\ast\,3
\]

Find out more about our mobile signing services!
Interest Rate Differential
The penalty is the amount of interest lost if your lender were to flip, lending the funds at today’s rates.
How to calculate it:
\[
\begin{bmatrix}
Original\,mortgage\,rate-current\,mortgage\,rate
\end{bmatrix}\ast
\begin{bmatrix}
\frac{Mortgage\,Principle*Original\,Interest\,Rate}{12}
\end{bmatrix}\ast\,months\,remaining\,in\,current\,term
\]
The penalty is the amount of interest lost if your lender were to flip, lending the funds at today’s rates.
How to calculate it:
Minimize your refinance penalty by taking advantage of pre-payment options.
Most mortgages come with prepayment options that allow you to either a. contribute a lump sum against your mortgage each year and/or b. increase your monthly payment.
Either will give you the ability to decrease your mortgage principal and therefore your penalty. For various reasons, it’s a great idea to take advantage of either or both of these options.
Need to learn more about mortgage refinancing?
Learning Centre

The Biggest Mistake Ontario Property-Buyers Make BEFORE Buying Their Property and How You Can Avoid It
The Biggest Mistake Ontario Property-Buyers Make BEFORE Buying Their Property and How You Can Avoid It Ask any Ontario home-buyer, commercial real-estate buyer, or investment

New Changes to Ontario Land Speculation Taxes
New Changes to Ontario Land Speculation Taxes On March 30, 2022, the Ontario Provincial Government announced changes to the rules for when a property is

Why you need an experienced real estate lawyer on your side
Why you need an experienced real estate lawyer on your side By Mark Weisleder No real estate agreement is simple, and all kinds of issues