Real Estate

How to minimise breaking variable mortgage penalty ?

  • Last Updated:
  • Nov 28th, 2018 11:02 am
[OP]
Newbie
May 7, 2014
45 posts
6 upvotes
Toronto, ON

How to minimise breaking variable mortgage penalty ?

Hi ,
My mortgage is up on renewal in March next year , and I am planning to sell my home in June next year . Could someone suggest how can I minimise my early termination of mortgage penalty ?

Thanks
4 replies
Deal Addict
Nov 22, 2015
4100 posts
3186 upvotes
stevesingh wrote:
Nov 28th, 2018 9:46 am
Hi ,
My mortgage is up on renewal in March next year , and I am planning to sell my home in June next year . Could someone suggest how can I minimise my early termination of mortgage penalty ?

Thanks
Might as well renew into a VRM. You could go into a 6 month open but the rate will be much higher. Penalty to break a VRM is 3 months interest so it'll be around the same either way.
Deal Fanatic
User avatar
Mar 23, 2008
8239 posts
4927 upvotes
Edmonton
Talk to a broker and lay out your expected scenario. Get them to work with you to meet your goals.

C
Deal Fanatic
Feb 22, 2011
5539 posts
5173 upvotes
Toronto
Probably best to go with an open mortgage, for me it was about 1% higher and there is no penalty to pay it off, just the normal discharge amount you would have to pay regardless.
Deal Fanatic
User avatar
Feb 2, 2014
5974 posts
1336 upvotes
Toronto
stevesingh wrote:
Nov 28th, 2018 9:46 am
Hi ,
My mortgage is up on renewal in March next year , and I am planning to sell my home in June next year . Could someone suggest how can I minimise my early termination of mortgage penalty ?

Thanks
Go variable. Rates start at 2.71% 5-year variable. You can also port penalty free.
Kevin Somnauth, CFA
Mortgage Broker - Mortgage Architects (#10287) and Real Estate Salesperson - Century 21 Innovative
President's Club Award Winner At The Mortgage Architects

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