Renewing or refinancing
Break penalty
What it costs to break a mortgage before maturity, and why the gap between lenders is enormous.
The difference from your contract rate is the discount you were given; it is subtracted from the reference rate, which inflates the penalty.
Fill in the fields to see the result.
Pick a rate from today's grid, or enter the one your lender offered you.
These results are provided for illustration only. They apply the Canadian mortgage rules and the Quebec schedule in force, but they are not an offer of financing nor investment advice: the actual rate, amortization and terms depend on your file and on the lender chosen, and are subject to change. For a firm answer, talk to a broker.
Does that number work for you? A broker will confirm it with a real lender. In most files our compensation comes from the lender — if it were ever otherwise, your broker tells you before anything moves.
Schedule 2026 — Banque du Canada (checked on 2026-08-25).
What the number does not tell you
On a variable rate, the penalty is always three months' interest. On a fixed rate, it is the higher of that and the interest rate differential — and this is where lenders diverge radically. A chartered bank computes the differential from its POSTED rate, less the discount it granted you at signing. That discount, which you negotiated as a win, mechanically inflates the exit bill.
On the same file, the bank method and a non-bank lender's produce very different amounts — compare them right here by switching the “lender's method” above. That is a reason to read the prepayment clause BEFORE signing, not when leaving. Always ask your lender for the figure in writing: each has its own exact formula, rounding and discharge fees. This estimate tells you whether the question is worth asking.