A good rule of thumb on closed mortgage penalties:
- when interest rates are high, penalties are low (3 months interest)
- when interest rates are low, penalties are high (IRD)
Right now, interest rates are historically low and penalties on fixed rate mortgages are IRD, unless you have a variable, which remains at 3 months interest.
Quote:
Originally Posted by albertGQ
Variable rates are always only 3 months interest
there's only penalties on closed mortgages. There are open mortgages as well.
Some may have a HELOC which has no penalties either.
Some probably port their mortgage too
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