Ontario mortgage help

Breaking a mortgage in Ontario

Before ending a closed mortgage early, obtain a written payout quote and compare the penalty, fees, payment change, interest, and remaining balance over the same period.

Reviewed August 31, 2026Published by Ontario Mortgage HelpHow we review

What to do first

  1. Ask the lender for a written payout statement showing the penalty, discharge fee, calculation date, and expiry date.

  2. Review unused prepayment privileges, portability, and blend-and-extend options in the mortgage contract.

  3. Add legal, appraisal, registration, discharge, cashback-repayment, and other transaction costs.

  4. Compare keeping and breaking the mortgage over the same time period, including remaining balances.

Important considerations

Penalty methods varyThree months' interest and interest-rate-differential calculations can use contract-specific rates, discounts, remaining terms, and prepayment allowances.

The quote can changeRates, balances, payment dates, and the payout date can change the amount. Use a current written statement for the intended transaction date.

A lower rate does not guarantee savingsPenalty, fees, a changed amortization, and the period you keep the new mortgage determine the result.

Official sources

Breaking your mortgage contractFinancial Consumer Agency of CanadaHow to reduce prepayment penaltiesFinancial Consumer Agency of CanadaShopping for a mortgageFinancial Services Regulatory Authority of Ontario

Related mortgage help

Prepayment penaltyEstimate the main formulas, then request the actual payout.Fixed or variable rateCompare payment stability, rate exposure, and contract features.HELOC, refinance, or second mortgageCompare access, repayment, rates, penalties, and fees.