payout: BEWARE of Mortgage Payout Penalties - Canada - 03/04/09 06:47 AM
Don't Be Surpirised by Payout Penalties
If you are locked into a closed mortgage and you are Selling (or trying to negotiate a lower rate with another lender) you will be penalized.  This penalty will be added to the outstanding balance of your mortgage at the lawyers when you sell.  Sellers are sometimes surprised by this cost. 
Penalties are usually calculated in the following way:
A) Three months interest on your current mortgage - a $300,000 mortgage would have a penalty of approx. $4,500.  I used 6% as an interest rate on a present mortgage.  $300,000 X .06 = $18,000 per … (1 comments)