One penalty, calculated honestly
Mortgage penalty calculator
Estimate three months of interest. Fixed-rate penalties may instead use a larger interest rate differential.
Your lender's current rate for a term matching your remaining time. Default snapshot as of 2026-07-16.
Estimated penalty
Three-month interest$1,981.80
IRD estimate$0.00
Estimated charge$1,981.80
Three-month interest binds. Fixed mortgages commonly charge the greater amount.
IRD estimates vary by lender (posted-rate discounts differ) — this is the standard simple-interest method.
Educational estimate, not financial or mortgage advice. Confirm figures with your lender or a licensed mortgage professional.
How the IRD estimate works
The standard simple-interest estimate multiplies your balance by the positive difference between your contract and comparison rates, then by the fraction of a year remaining. Lenders can instead use posted rates and your original discount, so verify the lender's written quote.
Interest Act s.10 can cap the charge at three months' interest for a mortgage whose original term exceeded five years once five years have passed. The rule is specific and easy to oversimplify. Verify with your lender before acting.
Interest Act, R.S.C. 1985, c. I-15, s.10