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Mortgage Squad Advisors
Mortgage penalty

Mortgage penalty calculator.

The cost to break a mortgage depends almost entirely on which lender holds it. Big-6 banks use posted-rate IRD — far pricier than a monoline’s fair IRD. Pick your bank for a tailored estimate.

Calculate by bank
TDTD Canada TrustPosted-rate IRDRBCRBC Royal BankPosted-rate IRDScotScotiabankPosted-rate IRDBMOBMO Bank of MontrealPosted-rate IRDCIBCCIBCPosted-rate IRDNatiNational Bank of CanadaPosted-rate IRD

Mortgage with a monoline or credit union? Use the generic prepayment-penalty calculator and set your own comparison rate.

Why two people with the same balance pay wildly different penalties

The penalty to break a fixed mortgage is the greater of three months’ interest or the Interest Rate Differential (IRD) — and the IRD depends on the comparison rate the lender uses. Big-6 banks use posted-rate IRD, plugging in an inflated posted rate (~6.79%) that widens the gap against your contract rate and pushes the penalty into five figures. Monolines and many credit unions use fair IRD tied to today’s discounted rate, producing a far smaller number. Same balance, same months left, very different bill — which is why the bank-specific calculators above matter.

Whatever the estimate says, the exact figure is confirmed only in a written payout statement. Get one from your lender, then send it to us — we verify the real number, check your charge type, and model whether porting, blending, or breaking and switching across 50+ lenders comes out ahead.

Mortgage penalty calculator — FAQ

How is a mortgage penalty calculated in Canada?
On a fixed mortgage you pay the greater of three months' interest or the Interest Rate Differential (IRD). On a variable mortgage it's almost always just three months' interest. The IRD is where it gets expensive — and how big it is depends entirely on which comparison rate your lender uses.
Why does the bank matter so much?
Because Big-6 banks use posted-rate IRD — comparing your contract rate against an inflated posted rate (~6.79%) — while monolines use fair IRD tied to today's discounted rate. The same balance can produce a $14,000 penalty at a Big-6 and ~$4,000 at a monoline. That's why we built a calculator per bank.
Which bank's penalty calculator do I need?
Pick the lender that holds your current mortgage from the list above — each is pre-loaded with that bank's posted-rate IRD method. If your mortgage is with a monoline or credit union, use the generic prepayment-penalty calculator, which lets you set the comparison rate yourself.
Can I trust the estimate?
It's a close approximation. The exact penalty depends on your lender's comparison rate on your discharge date and is confirmed only in a written payout statement. Request one from your lender, then send it to us — as an FSRA-licensed brokerage we verify the real number and model whether breaking still wins.

Got a payout statement? Don’t break blind.

Send us your lender’s payout figure — we verify it, check your charge type, and model whether breaking still wins across 50+ lenders. No bureau pull to start.