Who can beat 5 year fixed term offered by First National Financial?

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anonymous

Where can I get the best mortgage rate in Toronto Ontario?

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Q. When i decide to break my 5 year fixed term mortgage, how much penalty i have to pay if i break it at the end of a 3rd year?

"3 month mortgage interest or interest rate deferential penalty...."

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.

Someone said: Does this mortgage penalty of 3 months mortgage interest apply on the remaining mortgage interest owed from the date of notification to the bank/mortgager, OR the total interest starting from the beginning of the mortgage, irrespective of when you wish to pay off the mortgage? Example: Mortgage amount: $100,000 Mortgage period: 5 year Start : January 1, 2011 Interest Rate at time of mortgage: 5% Total interest due (5 yrs): $25,000 (or $417/month) [I realize the figures are not accurate, just approx. Just play along] Notify bank on July 1, 2013 that you wish to pay the mortgage off. Interest Rate as of July 1, 2013: 10% Is the penalty therefore (approx): (a) $1251? (b) $25,000 (because the interest rate doubled)?

This answer closely relates to:

First national 5 year fixed rate
- In which case do banks charge you 3 month interest rate or interest rate deferential when it comes to breaking your mortgage?
- Will i pay penalty if i break fixed rate mortgage 3 moths before ends?

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