Mortgage Prepayment Charge Calculator
We offer a Mortgage Prepayment Charge Calculator that allows you to estimate the prepayment charge that would apply to your mortgage loan as of today's date. You can change the information you enter, such as the prepayment amount, so you can see how these changes can affect the estimated prepayment charge.
To use the calculator, please refer to your Mortgage Loan Statement of Disclosure, Mortgage Loan Renewal Agreement or Mortgage Loan Conversion Agreement, whichever is applicable and most recent.
Understanding Mortgage Prepayments
Paying down your mortgage faster, being mortgage-free, and saving yourself thousands of dollars in interest costs, are important goals for many of our customers. To achieve this, Equitable Bank offers competitive prepayment privileges on all of our mortgage products. A prepayment privilege may include the option to make a lump sum payment of up to a certain percentage of your original principal balance or to increase your regular payments by up to a certain amount. The prepayment privileges applicable to your mortgage loan will depend on the type of mortgage you have with us and will be subject to the terms and conditions contained in your mortgage loan documents.
It is important for you to know that, if you have a closed term mortgage with us, and you would like to prepay the balance of your mortgage loan in full or make a lump sum payment to reduce the principal amount that exceeds your prepayment privilege, you will need to pay a prepayment charge.
A prepayment charge is a fee charged by Equitable Bank when you prepay the entire balance of your mortgage loan, or a portion of the balance in excess of your prepayment privilege, prior to the maturity date. Your mortgage loan documents describe in detail the prepayment privileges and charges that apply to your mortgage loan. It is important that you understand what prepayment charges are, when they may apply, and ways you may be able to avoid them.
To help our customers make informed decisions, we have prepared an information sheet, Understanding your Mortgage: What You Need To Know About Mortgages and Mortgage Prepayment Charges, which provides a short glossary of commonly used mortgage terms, a comparison of the different types of mortgage loans, a description of how you can pay off your mortgage loan faster without having to incur a prepayment charge, and options available to avoid paying a prepayment charge. It also explains how Equitable Bank calculates prepayment charges.
If you are thinking of paying out your mortgage loan early, making a lump sum payment, or increasing your regular payment amount, please speak to one of our Mortgage Specialists. They can let you know what prepayment charge would apply, if any. They can also help you determine whether there are options available to you that can help you avoid these charges.
For more information about prepaying your mortgage loan, please contact us at 1-888-334-3313. If you need additional information, you can also contact the Financial Consumer Agency of Canada.
This calculator is for estimation purposes only. The estimated prepayment charge may differ from the actual prepayment charge.
The resulting prepayment charge is an estimated amount for information purposes and is only valid for today. The actual prepayment charge may differ from the estimate provided. For the exact prepayment charge and other fees associated with making a prepayment, please contact us at 1-888-334-3313.
Additional costs will apply if you are prepaying your mortgage loan in full. Information on applicable fees can be found in your mortgage loan documents or by calling us at 1-888-334-3313.
You are entitled to make a partial prepayment up to a maximum amount each 12-month period without penalty, in most cases starting on the interest adjustment date of your mortgage loan or the anniversary of that date (you can find this information in your Statement of Disclosure, under “Additional Information about your Mortgage”). This calculation assumes that you have not made any prepayments and that the maximum you are allowed to prepay without incurring a prepayment charge is either 15% or 20% of the original principal amount. The exact amount will depend on the prepayment privilege that is applicable to your mortgage loan. You can find more information about this in your mortgage loan documents or by calling us at 1-888-334-3313.
If you have an Adjustable Rate mortgage, the estimated prepayment charge may change over time due to several factors. These include, but may not be limited to, your mortgage loan balance, the amount you choose to prepay, and/or the Equitable Bank Prime Rate.