Scotiabank - Mortgage payout penalty
Due to professional obligations, I might have to sell my house within the next year. Let’s say there is a 50% risk. I'm currently NOT using the line of credit, so no impact if I close it.
When looking at the charges and penalties using the calculator ( http://cgi.scotiabank.com/mortgage/Scot ... yment.html ), the amounts can vary drastically. Ex.: on the first 6 months (ending mid October in my case), the penalty seems to be only 1500$. After October, it’ll jump to close to 7000$ because the interest rate delta comparison jumps to a 4-years plan.
1) Is this calculation right, or if I’m misusing the calculator?
2) What would you do in my situation? Should I switch from closed (3.09% 5-years) to an opened (3.8% 5-years) plan NOW, or if there are other solutions & tweaks in order to make the penalty as low as possible if I sell let’s say in next December or January.