Real Estate

Widow: Bank allow early mortgage prepayment?

  • Last Updated:
  • Jul 4th, 2019 8:16 pm
[OP]
Jr. Member
Mar 7, 2012
163 posts
45 upvotes
WINNIPEG

Widow: Bank allow early mortgage prepayment?

A friend is recently widowed. She's the sole heir of her ex-husband's estate.

After the life insurance payout, she has sufficient cash on hand to pay the balance of the mortgage off now.
So she's paying mortgage interest while holding on to excess cash.

Her rep at TD Bank has said that prepayment of the mortgage isn't allowed; the standard pre-payment fees would apply.

Do banks sometimes make exceptions in cases like this, to allow early pre-payment for widows / widowers who've received a life insurance payout and no longer need the mortgage?
3 replies
Deal Addict
Jan 15, 2017
2542 posts
1863 upvotes
Very doubtful. Just find out what the pre-payment penalty would be. Depending on the mortgage, it may still be worthwhile to just pay it off.
Jr. Member
Oct 21, 2013
195 posts
74 upvotes
waterloo, on
sorry for her loss. . Its unlikely bank will make an exception. But no harm in asking.

also, every mortgage comes with like 10% or 20% pre payment privilege of the principle every year. She can do that until renewal comes and thats when she can pay it all off.
Royal LePage Realtor
Serving Kitchener/Waterloo/Cambridge/Elmira/Guelph and surrounding cities
[OP]
Jr. Member
Mar 7, 2012
163 posts
45 upvotes
WINNIPEG
Thanks for the feedback. I thought it would be worth asking if this is a thing.

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