What Is Breaking A Mortgage & How To Avoid Penalty?
The Bank of Canada’s hefty interest rate drop this week may have some Canadian homeowners tied into expensive mortgages fantasizing about a lower rate.
However, the potential of relocating to a new property with a lower interest rate, or refinancing to take advantage of lower monthly payments, is weighed against the severe penalties associated with mortgage default.
While breaking a mortgage can often result in thousands of dollars in penalties depending on the type and number of years remaining on the term, experts who spoke with Global News believe there are various ways to reduce or even eliminate those fees entirely.
