cans omeone plz tell me if you know of anywhere where i can find the prepayment penalties charged by the five banks for fixed-rate mortgages. i want to compare the penalties across the 5 big banks, but i dont seem to find any information about what their prepayment penalties are on any of the banks websites or using google. thx.
You might have to talk to someone at the banks. I might be wrong but I think they offer penalty-free prepayments up to a certain amount per period or per year.
Most charge an interest rate differential or 3 months interest. I don’t think you’ll find any info on their websites… Out of curiosity why are you looking for info on their penalties?? If you’re expecting to break a mortgage you can get an open mortgage. An open variable is still probably 1.50% less than a fixed right now. Better rate and more flexibility.
And yes they do allow anywhere from 10-20% of original mortgage as a lump sum payment yearly.
thx see heres the thing im doing research that tells me that scotiabank’s partial prepayment rate (partial prepayment is prepayment within the effect privileges, that do not result in any penalty incurred) is much lower than that of the other big banks. so ive been trying to find out why this is. and this is for 5 year fixed rate mortgages only. so im thinking it probably has to do with prepayment penalties being hgiher by scotiabank. all the mortgage people ive asked either dont know, or wont want to tell me unless im interested in a mortgage for myself. but the mortgage salesmen just say everything is very similar among all the big banks in terms of prepayment privileges. any ideas where i could find this out? thanks !
Maybe I’m misunderstanding, but i think Scotia let’s you pay a 15% lump sum annually. (link below). This is fairly consistent if not generous. RBC’s is 10% and TD’s is 20%. They do only let you increase your payments by 15%…whereas others let you increase by double. I think the penalties are consistent throughout–they’ll all screw you if you break your mortgage. If prepaying a lot is important, go open variable, it’s 1.5% less than a closed fixed (in current rate environment in canada), and you have no prepayment restrictions at all. Good luck bro. http://www.scotiabank.com/cda/content/0,1608,CID10958_LIDen,00.html
Scotiabank has also a double up option. It is not called double up, but match a payment and it works exactly in the same way as in other banks. That you double up your mortgage payments. I don’t understand why you just don’t go to a Scotiabank branch and ask all of these questions (rather than posting here). They should be happy to answer those questions without you applying for a mortgage.
thx. i did go to a scotiabank branch and spoke to a mortgage sales rep. he said that scotiabank prepayment privileges are very competitive with the other big banks, they all are very similar. he said they wouldnt be able to earn profit if they have higher penalties. and i asked another one, and he stopped replying after he found out i wasnt interested in applying for a mortgage and am just asking this for researcdh. i tried mortgage brokers and they dont seem to know why scotia has a lower partial prepayment rate.