Pre-Payment

Most mortgages offer pre-payment options of 15-20% annually of the original mortgage amount. It’s one of the most important mortgage features, allowing you to reduce the penalty and save a lot of money while switching midterm to a better deal.
The best lenders allow you to make prepayments any month during the year in multiple installments, usually with the cycle of your payments. The less desirable option is prepayment on your anniversary. Flexibility and timing are critical when the time comes to breaking a current contract and switching to a better one. Please note that most Canadian do break their mortgage midterm.
Most mortgages let you increase your ongoing payments by 15-20% each year. In order to keep your flexibility, we at Sneg Mortgage Team highly recommend NOT to increase your payments without consulting us and learning all of the implications that come with doing so.