I doesn`t matter if you break 3 years later or 6 month before the term ends. You will pay the same mortgage penalty, 3 month mortgage interest or Interest Rate Deferential penalty.

A little clarification to mortgagepro`s comment. It is true that you will pay a penalty regardless of the months remaining but the penalty could be drastically different between a 3 year and 3 month remaining term. There are 2 calculations that the banks use for penalties. 3 months interest calculation and Interest Rate Differential IRD. If the conditions are right 3 months penalty for 3yr or 3month term should be close. If the conditions are such that an IRD will be used to calculate your penalty then you are looking at a huge difference in penalty. Talk to your bank and they will calculate the costs involved for you. My suggestion is to consider a port of your mortgage. A port is where you move the mortgage term rate and balance to the new property with no penalties. You can straight port it (no change in any mortgage particulars). You can port increase where you need more money (term remains the same, higher mortgage amount and the rate is blended with todays rate). Or do a port reduction (same term, same rate, smaller mortgage amount required for new house, some penalty may apply but much less than a complete break). One last thing I should mention. Once you bank gives you your options please contact a Mortgage Agent to do some further calculations for you. Many people have benefited from switching to a new bank for their new home. This is especially true today where rates are much lower than any mortgage started over 2 years ago. In the end what you end up doing with your mortgage must depend on how much money you will save going forward. That should be your #1 priority, mortgages are very expensive over time, you have to find ways to minimize your costs. I would be happy to consult with you if you have any questions. Abraham Niyazi - Mortgage Agent - Lic#M08010640 - Centum One FInancial Corp - Lic 10758. Cell: 416-993-4082 Toll Free: 1-866-728-3708 http://www.centum.ca/abraham_niyazi/ I deal with 25 Banks/Lenders and can do mortgages across Canada except Quebec.

It should not matter. You just need to call the lender to renew and they can most of the time do it by phone.

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3 years ago, we purchased our home for $210,000, we put $20k down and 1 year into the mortgage, re-financed somethings giving us a new mortgage balance of $215,000. we put a lot of work into our home and a local realtor said we could list for around $250,000. we are interested in another house worth $250,000. we would use the entire $35,000 to put down on the new home (we have some savings that would go to legal fees etc.) which means our mortgage balance would be the same amount as it is currently. question: would our mortgage company charge us for "breaking" our mortgage, or because it's for the same amount, would we just carry on? thanks for your help! so ghost, by paying off the mortgage completely, we would in effect be breaking it so we would be charged a penalty, correct? thank you for your "wise" advice the_unluckiest...but i wasn't asking advice on if we should move, you can't possibly understand the circumstances we are facing. what i was asking is how the mortgage company will treat our move. i mentioned that we have savings to cover closing costs, and our realtor is my husbands brother, so we will not be paying commission if he lists it exclusively. we are moving because our current home, is on a main hiway and we have no physical way to fence in our back yard, we have little children, and it is unsafe for them to remain in this home, so, we are making some sacrifices in order to give them a safe place to be...but once again, thanks for your advice. regarding the_unluckiest's comment: "do you honestly think you can pay off your mortgage and then pick one up right away?" what is the answer here? don't people move all the time, or are they all waiting for their term to be up in order to move? isn't it possible to pay off a mortgage and get another one right away...any clarification on this point is appreciated.

Sorry but your numbers don't add up. You are aware that your realtor fees will be about $10,000 (higher or lower depending on the brokerage you choose). On top of that you will have closing costs, and you'll also have to pay for an inspection of your new home, an appraisal for the new mortgage etc. Realistically just because your realtor tells you you can sell something for $250,000 doesn't mean that's what the market dictates. Also, it's unwise for ANYONE to just trade a house for something of the same value. Are you moving? Is there something wrong with your current home? Do you honestly think you can pay off your mortgage and then pick one up right away? Ever heard of equity? This is NOT recommended. I think anyone with decent business sense will tell you this is very unwise. I recommend you keep living in your home and build some equity and then contemplate a move years down the line. Doing a $250,000 sale to buy another place for $250,000 actually means you're LOSING money and not even breaking even. ADDED: It is DEFINITELY possible to pay off a mortgage and get another one immediately. But MOST people earn money on their homes before purchasing a new one. Also in this economy and market, it's difficult to get such a high mortgage. Perhaps you guys should entertain a home that's less expensive? Just so you guys actually have money saved up in case anything happens (ie: repairs need to be done).

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Just moved to the tampa area and have a background in sales job shadowed a cousin in his mortgage business in michigan and loved it!! what is the best way to break into the business?

Just look for a Loan Officer position. It is the best way to get started in the sales part of it. From there you can move your way up into management and operations.

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I know about the interest on everything whilst we are on a break but my question is regarding a remortgage. especially if we move to a new bank for it, will they hurt us because of the break?

In UK, If a mortgage payment holiday is within the terms and conditions of your account and all your other finances are OK, then any new mortgage should not be affected,

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Firstly to all the people who have asked why you have done this - why not?! People make mistakes and bad choices in life so back off, you're advice is being asked here not your judgement! You need to speak to your mortgage company and have your name removed asap. You will need to complete a Transfer of Equity form - an application fee will be charged. This will incur some costs but will be worth it to get out! Make sure you get what you are entitled to from inside the house too! xxx

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I have felt for a long time imprisoned at home, there has been some conflicts. i dont know what the best solution is to move out on my own and experience those joys, or to stay at home and save for a year and a half for a deposit for a home of my own. through work have lost some of my social life too. its hard to make this decision. please help!

is it possible for you to rent and save?

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We just got underway with a house and we are under contract. we are out of the time to get our deposit back. we have been under contract for weeks and are to close in 2 weeks. we are having problems in the area getting set up and now are wondering if we should have taken a different route and moved into a different community. however, we know it is too late. what exactly does happen when you don't close? how bad does it effect your credit and such? thanks

If you haven't closed you don't have a mortgage. If you back out of your contract to buy your home figure on losing whatever down payment you made. They may come after you for more, but most likely not.

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After finding that living in this particular area is unhealthy for me; i have decided that i cannot live here any longer. it has been about 30 months. i was not aware that the environment would cause me medical problems. ***************** ****************** for example, if someone has documentation that occasional moving air brings severe asthma attacks. they were not aware when they moved in and the realator/seller had no knowledge. can the mortgage contract be broken?

None of this matters. The mortgage is money you were given, money you spent, money you committed to repay. None of your medical issues are a concern, you can do what you want, but you have no rights to just keep the money, you need to repay it.

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I have until august with my current lease. my brother in law is leaving this beautiful house empty, but the owner wants someone there to help with her mortgage. do i break my lease and move into my dream house or tough it out while the house gets sold to someone else?

Talk to your current landlord and tell him your situation. If the landlord is lenient enough, you might be able to break your lease without burning a bridge. I recently broke a lease to move into a house and was asked to pay another month's rent so my landlord was covered while looking for another tenet. If you can go this route, I'd say go for it, otherwise it's not worth the problems you create by breaking a lease.

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He is moving across the country and leaving me stuck with the mortgage payments. we were merely dating, not married, and both our names are on the mortgage. he decided he doesn't want to pay any more and will move far far away. the house will sell at a loss in the current market. ***** should i rent my house and suffer making ends meet for the payments only to sell it later and have him actually make money on my hardship or sell now at a loss? if we both owe money after the house is sold, will he be forced to pay any of the debt or is it still all on me? help!! :(

If you are willing to rent and work hard to meet the mortgage to keep the property , then maybe you could suggest to him to sell his half of the property to you. You will then be the sole owner of the property and the mortgage. If he refuses, then you tell him that you want to sell the property and both of you will be making a loss, and he has to pay his share of losses to the bank. If he transfers his share of the property and mortgage to you, you are actually absorbing his share of the losses. If he neither want to transfer to you nor sell the property to you, then you could offer to transfer your own half of your property and mortgage to him. Then he will own the property and all of the mortgage. And he will make all the mortgage payments. Becareful that when you transfer the property you also liaise with the bank to transfer the mortgage because these are in 2 separate arrangements. Merely transferring the property doesn't automatically transfer the mortgage.

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Me and my partner bought a house on ftbi 8 months ago. we've now broken up. when we first moved in i paid the mrtgage 425 a month and he put the same amount in the bills account. i lost my job in august so he's been puttin 425 in my bank to cover the mortgage and ive been using my 200 from job seekers for bills with my savings. my savings ran out but his friend moved in in october paying 200 a month. so my 200 and his friends 200 a month was goin in the bill account. but he's recently had to move out. me and my partner decided to live together but i cant do it anymore. he broke up with me about month ago but we still argue about once a week cos im finding really difficult letting go and i can't come to terms that he doesn't want to try again. besides us not sleeping in the same bed it still feels like a relationship and its killing me having to see the man i love everyday and not be with him. none of us want to sell. we love this house, and on our wage we would never be able to buy a house again. we was lucky to be able to do the first time buyer scheme which wouldnt be available to us again as we wouldnt be first time buyers anymore. he's said he doesn't want to move out and that im the one with the problem, but he doesnt understand how hard it is for me to see him everyday. he doesnt have feelings or love me anymore so its alot easier for him. he's mentioned buying me out but on his wage are 770 a month. our mortgage is 425 and bills on his own aound 270 theres noway the mortgage company would allow it. it was a new build house so we bought it at 125000. house prices were falling and for that much you could buy a bigger house for 125000 but we couldnt because the 1st time buyer scheme only works on new houses so we had to pay this price. if we sell we will be thousands of £s of debt because i dont think we would get 125000 or more at the minute. we cant rent because of mortgage restrictions. i cant ever get over him if i have to see him everyday, wonderin if we;re gonna get back 2gether or if he's seein other girls when he gets home from work late. i was goin to move out but he still wants me to pay 200 a month as its not fair on him, which i suppose is right because the mortgage is both our responsibility, but at the same time its not fair on me, he gets to ive in a 3bed house whilst i have to share a bed at my mums. leaving this house is goin to be the hardest thing as it will make things definate that we're never going to get back together. what can i do?????????

Hav you though about taking in a lodger - it's not the same as renting the whole place out and you can earn up to a certain amount without having to declare it. otherwise you will have to face up to the fact that this relationship has broken down . He has mentioned that he might want to buy you out. Let him investigate this more as you never know he may be able to re-mortgage with his existing lender on moe favourable terms. Otherwise you may have to sell the property. if he doesn't want to sell you can comply him as the other joint owner under a power of sale under the Trust of Land and Appointment of Trustee Act. As an afterthought, did you both sign a declaration of trust when you purchased the property? Did you enter into a co-habitee agreement at all?