Hello, there is very little chance that any lender will waive the penalty associated with a closed mortgage. The only time that they may be able to get approval to waive the penalty is if you were to get another mortgage with them with a higher balance to replace your existing mortgage. Even then they will want you to port the mortgage to the new property and effectively honor your existing mortgage agreement. It does not hurt to ask and if you are a high value client with the bank they may try and eat some of the penalty cost but a full waiving of the penalty is unlikely. I hope this has helped. If any reader has questions regarding penalties or porting please do not hesitate to contact me at any time. Abraham Niyazi - Mortgage Agent - Lic#M08010640 - Centum One FInancial Corp - Lic 10758. Cell: 416-993-4082 Toll Free: 1-866-728-3708 x 115 http://www.centum.ca/abraham_niyazi/ I deal with 25 lenders and can do mortgages across Canada except Quebec.

You can`t break your fixed mortgage without a penalty. There is no chance a bank will let you do this unless you have a variable mortgage.

IRD or Interest Rate Deferential is a formula the banks use to calculate mortgage penalty if you decide to break the mortgage with your current lender. The IRD formula is used in a case where the current posted rates are lower then your mortgage rate. This is done in order to have a bigger penalty if you are breaking your mortgage for a better rate.