Mortgage fees: Prepayment penalties
A prepayment penalty is a fee that your mortgage lender may charge if you:
- pay more than the allowed additional amount toward your mortgage
- break your mortgage contract
- transfer your mortgage to another lender before the end of your term
- pay back your entire mortgage before the end of your term, including when you sell your home
Your lender may also call the prepayment penalty a prepayment charge or breakage cost.
Original Article Source Credits: Canada.ca , https://www.canada.ca/
Article Written By: NA
Original Article Posted on: 2020-09-16
Link to Original Article: https://www.canada.ca/en/financial-consumer-agency/services/mortgages/reduce-prepayment-penalties.html