Interesting to see how this develops. Most people don't know how the big banks calculate their pre payment penalties on mortgages, but they're insanely punitive. The "discounted rate" they give you that makes you feel all warm and fuzzy is just so they can increase profits and retention, as your penalty will be based on their posted rate - not your discounted rate.
http://montrealgazette.com/business/...ayment-charges