When it comes to mortgages, it is easy to focus on the rates and your current situation, but the reality is that life happens and when it does, rates won’t be the only thing that matters.
Typically, the penalty for breaking a mortgage is calculated in two different ways.
🔹Interest Rate Differential (IRD):
How the IRD is calculated can vary greatly from lender to lender. This is due to the various comparison rates that are used. However, typically the IRD is based on the amount remaining on the loan and the difference between the original mortgage interest rate you signed at and the current interest rate a lender can charge today.
🔹Three months interest:
In some cases, the penalty for breaking your mortgage is simply equivalent to three months of interest.
Ideally, you will want to be aware of what your penalty would be before you decide to break your mortgage. Speak to IK Financial mortgage Agents, as they will evaluate your current conditions and will advise on available options.
Book your complimentary consultation with Inna and Katerina by visiting our website ikfinancial.com