Most Canadians pay $7,000-$25,000 to break a fixed mortgage. We calculate BOTH penalty types (3-month interest vs IRD) and show which one your lender will charge. The difference can be $20K.
Penalty: 3 months interest
(Balance × Rate / 12) × 3Standard penalty for variable mortgages. Simple, predictable. Typically ranges $5K-$10K.
(Contract Rate − Current Rate) × Balance × (Months Left ÷ 12)Big-Six lenders use POSTED rates (not discounted) which inflates IRD penalties dramatically. Can hit $20K+ on a large mortgage.