If you are thinking of selling your home or remortgaging be aware that some banks are charging huge penalties.
Some lenders are charging mortgage prepayment penalties in the $10,000-$20,000 range.
Interest rates have dropped precipitously in recent months. Most lenders will charge a penalty that is the greater of 1) three months mortgage interest, and 2) an interest rate differential calculation. (Remember banks never lose money!)
If you are thinking of selling, call your bank and determine your penalty. I would suggest you ask for that in writing as any Realtor listing your home will want to be sure you have that information. A Realtor can not get this information for you as privacy laws forbid obtaining someone else mortgage information.
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