Knowledge centre
Not always. A switch at maturity may avoid an early-payment penalty, but appraisal, legal, registration, assignment, discharge and setup costs can remain. Some lenders cover selected costs, subject to conditions.
Yes. The new mortgage or sale cannot close cleanly until the lawyer can pay the secured debt and deal with the registered charge. Missing payout instructions, secured lines, penalties or lender processing time can delay the transaction.
OSFI says federally regulated lenders are not expected to apply the minimum qualifying rate when an uninsured mortgage switches at renewal with no increase to the loan amount or amortization. The new lender still underwrites the borrower and property under its own policy.
Not necessarily. A lender may blend the existing rate with a new rate and extend the term, sometimes without collecting the penalty in cash. The economic cost may still be reflected in the blended rate or product restrictions.
No. Portability is a contractual option subject to lender approval, requalification, property acceptance, timing and amount rules. A portable mortgage can still create a penalty or financing gap.
Possibly. A permitted lump-sum payment may lower the balance used for the penalty, but the privilege, timing and penalty formula are contract-specific. Get written confirmation before moving money.
Many fixed closed mortgages charge the higher of three months’ interest or an interest-rate differential, while many variable closed mortgages use three months’ interest. The exact formula, comparison rate and discounts come from the contract and lender disclosure.
Yes, if a closed mortgage is repaid before maturity and the contract permits a prepayment charge. Selling the property does not automatically remove the penalty. An open mortgage, an eligible port or a hardship accommodation may produce a different result.
The final cost can include a lender discharge or administration fee, legal or notarial work, land-registration charges and, if the mortgage is repaid early, a prepayment penalty. Ask for an itemized estimate before choosing the transaction date.
No. Paying the balance brings the debt to zero, but the registered charge must still be formally discharged from title. Your lender, lawyer and land-registration process must complete that final step.