NEWSLETTER
Hi everyone, understanding mortgage penalties touches thousands of people in Quebec. What can we do about it? Well, first of all, when you break your mortgage contract early, like selling or refinancing, two common penalties can occur.
The first one is a three-month interest penalty, which is calculated by what you have been paying. Then you have the different interest penalty, which is a little more complicated and is typically higher, especially if market rates have decreased since you signed your mortgage. I can tell you that you want to avoid this because it is costly, but sometimes you don't have a choice.
Some of the easiest things to do are, if you're repurchasing, to try and transfer one mortgage to another. It can help. Also, prepayment privileges can really help lower the penalties. Always consult a mortgage broker or your loan advisor before signing or breaking a contract to get the best advice that can be tailored to you and your situation.
If you're ready to look at real estate or if you want a hand with your project, feel free to call me, Lynn Gorlay, at 514-996-0048. Talk to you soon!
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