Personal Finance

Anyone know what the Presidents Choice Financial Mortgage Early Termination fee is?

  • Last Updated:
  • Feb 27th, 2010 8:24 pm
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[OP]
Member
Jan 10, 2005
247 posts

Anyone know what the Presidents Choice Financial Mortgage Early Termination fee is?

I currently have 76 months left on a 10 year 5.2% with $236K left.

I have a job opportunity and am not interested in purchasing a new home as of yet in the new city if I accept. Just wondering what the early termination fee is with PCF?

Thank you.
5 replies
Deal Expert
User avatar
Aug 18, 2005
18715 posts
3332 upvotes
GTA West
It's in your mortgage contract.

A 10 year mortgage is currently at 5.3% with PCF, so I don't think you're going to get raped on this or anything.
What if there were no hypothetical questions?
Sr. Member
Oct 20, 2008
873 posts
1 upvote
GTA
read the mortgage agreement on the clause that mentions the early full payout repayment penalty

Canadian banks generally say three months of interest to clear off the mortgage + any service charges, around $300
Newbie
Jul 23, 2008
79 posts
13 upvotes
you really need to look at your mortgage documents as there are quite a few ways the penalty applies like the 3 month interest rule, interest rate differential where they take the difference between the existing rate and the rate for the term remaining, multiplied by the principal outstanding and the balance of the term or I've even seen where the penalty is the difference between the existing rate and the current rate for Cdn government issued bonds
Jr. Member
Jan 30, 2010
105 posts
Calgary, AB
I'm pretty sure I read a canadian rule somewhere that if you are in a 10 yr fixed the bank can ONLY LEGALLY charge you a 3 month simple interest penalty after 5 yrs. IRD CAN NOT APPLY. In your case you got just over a yr to wait. :(

Yup, I thought so, I found this on the topic.

Sidebar: People hate lender penalties, especially the evil IRD. One nice thing about 10-year terms is that 3-months interest is the most homeowners pay to break the mortgage after five years. That’s thanks to the Interest Act.

http://www.canadianmortgagetrends.com/c ... eak-5.html
[OP]
Member
Jan 10, 2005
247 posts
I have gone through all my documents and havent found anything.

I have read online and there seems to bee 2 different ways.

Either 3 mortgage payments or a differential interest rate calculation.

Thank you for your help.

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