Real Estate

Can you help me understand this text in mortgage document regarding pre-payment penalty?

  • Last Updated:
  • Aug 27th, 2021 9:42 pm
[OP]
Deal Addict
Jan 26, 2016
2227 posts
2250 upvotes
Toronto, ON

Can you help me understand this text in mortgage document regarding pre-payment penalty?

Could you please let me know what this means?

Thanks!

Image
3 replies
Deal Addict
User avatar
Nov 30, 2005
1849 posts
1434 upvotes
Ottawa, ON
WinterSleep wrote: Could you please let me know what this means?

Thanks!

Image
1. You are permitted to pay a lump sum payment of up to 15% of the original mortgage amount without penalty in any calendar year.

2. You can double up on your monthly payment.

3. If you choose to pay the entire balance before the end of the term, the penalty is 3 month interest of the remaining balance.
[OP]
Deal Addict
Jan 26, 2016
2227 posts
2250 upvotes
Toronto, ON
ZxExN wrote: 1. You are permitted to pay a lump sum payment of up to 15% of the original mortgage amount without penalty in any calendar year.

2. You can double up on your monthly payment.

3. If you choose to pay the entire balance before the end of the term, the penalty is 3 month interest of the remaining balance.
Thanks. You are sure about this?
Deal Addict
Jul 11, 2010
1272 posts
311 upvotes
Toronto
WinterSleep wrote: Thanks. You are sure about this?
Yes. It is standard language in most mortgages. If you make lump sum payments during the year each payment must be a minimum of $100;
Doug Boswell
intelliMortgage Inc. Brokerage #12326
FSRA #MO09002332

Top