This is one of the surprises us Canadians have been receiving the last few years when asking for our Penalty and the COST to get out of our current mortgage.
Well many of us know the traditional 3 months interest penalty, but if the rates today are less then the rate you committed on, then you could be in for a very Unpleasant surprise, be sure to contact me if you need some strategies to help avoid these extra fees and costs.
I’ll take 2 minutes to explain what IRD is in this video….
Another thing you can do is search Google for that lender’s “standard charge terms.” The penalties are usually explained there.
Thanks to canadianmortgagetrends Here’s a sample IRD explanation from BMO’s standard charge terms: