Hello Anon, breaking your mortgage with Home Trust means you will have to pay the mortgage out completely or move the mortgage to another lender called a switch. Home Trust has different guidelines for their different mortgage products. Some products do not allow you to break the mortgage unless you are selling your house. You may only be allowed to break without sale after a part f the mortgage term has expired. Please dig up the papers you signed with Home Trust back when you got the mortgage to confirm the options you have. If they do allow you to break the mortgage you may have to pay a penalty which can be as low as 3 months interest penalty or the often larger calculation of Interest Rate Differential. Even if you have to pay a penalty you often are able to realize a healthy savings when breaking a mortgage and moving it to a lower rate elsewhere. Please speak to a Licensed Mortgage Agent who can do the calculations for you. Unless you are getting a better rate elsewhere do not think of leaving Home Trust because that penalty should be avoided if possible. As for Bank of Montreal, and this goes for the big 5 banks in Canada, all are relatively equal in their products, rates and guidelines with varying differences at each level. The truth of the matter is that EVERY lender in Canada is a good choice as long as the interest rate is low and the details and conditions of the mortgage agreement are acceptable to you. After all once the deal closes the lender is just there taking your mortgage payment, they really do not do anything more for you during the life of your mortgage term other than that. The details and conditions I mentioned are the only things that may be important to you but as long as you reviewed them before signing for the mortgage you should have no problems taking advantage of things like pre-payment of your mortgage or changing your mortgage payment frequency. A Mortgage Agent is able to breakdown all of the features and conditions of the many mortgages products out there. They have access to multiple big banks and smaller lenders and can advise you of which lender has the features you want at the lowest available rates. I hope this helped. If you or any other reader would like some more info on this or any topic 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 www.centum.ca/abraham_niyazi/ I deal with 25 Lenders/Banks and can do mortgages across Canada except Quebec.

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.

how much will it cost me to break my mortgage contact of 5 years. I still have 31/2 years left with the td bank