There will be penalty if you break a mortgage contract. Usually banks charge 3 month interest as a penalty for breaking the mortgage.

Hello Felton. If you sell your property before the mortgage term is up your options are limited. You either have to port the mortgage to another property that you purchased. Thereby honoring your original mortgage agreement and saving the cost of the penalty for early pre-payment. Or if you are not buying another property that penalty will have to be paid to the lender. Asking the bank to waive part of all of the penalty almost never gets approved but it is worth asking and if you have enough business with the bank that they are afraid to lose they may consider doing something for you. I hope this helps, if there are any questions you or another reader would like to discuss in detail 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 many Banks/Lenders across Canada and have been in the industry for over 11 years.