Real Estate

How to minimise breaking variable mortgage penalty ?

  • Last Updated:
  • Nov 28th, 2018 11:02 am
[OP]
Newbie
May 7, 2014
49 posts
10 upvotes
Winnipeg , MB

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
4890 posts
4039 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
9827 posts
6184 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
5918 posts
5635 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
6844 posts
1687 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
Owner/Principal Broker - First Toronto Mortgage - Mortgage Architects (#13176)
Real Estate Salesperson - Century 21 Innovative
President's Club Award Winner At The Mortgage Architects

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