Mortgage Prepayment Penalty Calculator Canada — By Lender (IRD & 3-Month) 2026

Every lender calculates your penalty differently — and the difference can be tens of thousands. Pick your lender and see

discloses the discount off posted you received. Can't find it? 1.25%–1.75% is typical on a big-bank 5-year fixed.

Gov't of Canada yield for your remaining term

Right now posted rates sit well above your contract rate, so the IRD leg stays small and the 3-months floor sets your penalty. The posted-rate clawback bites hardest when rates have FALLEN since you signed — worth re-checking here before you break the term.

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the mortgage to your next property instead of breaking it.

with your current lender — no penalty, blended rate.

The lender you sign with matters as much as the rate

A slightly cheaper rate can cost you thousands more at exit. A RateStreet broker helps you evaluate both sides of that trade.

Pick your lender and see how THEY calculate your mortgage prepayment penalty — posted-rate IRD vs fair-rate methods, with sources from each lender's own disclosure.

Editable assumption — your lender's posted rate for the term closest to your months left.

Fixed closed: you pay the GREATER of 3 months' interest or the IRD. Banks present-value the real charge, so actual figures often land slightly below this estimate.

Variable closed: 3 months' interest only — there is no IRD on a variable mortgage. This is why variable exit costs are small and predictable.