Paying down your mortgage faster, being mortgage-free, and saving yourself thousands of dollars in interest costs, are important goals for many of our customers. To achieve this, Equitable Bank offers competitive prepayment privileges on all of our mortgage products. A prepayment privilege may include the option to make a lump sum payment of up to a certain percentage of your original principal balance or to increase your regular payments by up to a certain amount. The prepayment privileges applicable to your mortgage loan will depend on the type of mortgage you have with us and will be subject to the terms and conditions contained in your mortgage loan documents.
It is important for you to know that, if you have a closed term mortgage with us, and you would like to prepay the balance of your mortgage loan in full or make a lump sum payment to reduce the principal amount that exceeds your prepayment privilege, you will need to pay a prepayment charge.
A prepayment charge is a fee charged by Equitable Bank when you prepay the entire balance of your mortgage loan, or a portion of the balance in excess of your prepayment privilege, prior to the maturity date. Your mortgage loan documents describe in detail the prepayment privileges and charges that apply to your mortgage loan. It is important that you understand what prepayment charges are, when they may apply, and ways you may be able to avoid them.
To help our customers make informed decisions, we have prepared an information sheet, Understanding your Mortgage: What You Need To Know About Mortgages and Mortgage Prepayment Charges, which provides a short glossary of commonly used mortgage terms, a comparison of the different types of mortgage loans, a description of how you can pay off your mortgage loan faster without having to incur a prepayment charge, and options available to avoid paying a prepayment charge. It also explains how Equitable Bank calculates prepayment charges.
If you are thinking of paying out your mortgage loan early, making a lump sum payment, or increasing your regular payment amount, please speak to one of our Mortgage Specialists. They can let you know what prepayment charge would apply, if any. They can also help you determine whether there are options available to you that can help you avoid these charges.
For more information about prepaying your mortgage loan, please contact us at 1-888-334-3313. If you need additional information, you can also contact the Financial Consumer Agency of Canada.
This calculator is for estimation purposes only. The estimated prepayment charge may differ from the actual prepayment charge.