Pre-Payment Penalties & Privileges
Pre-payment penalties and privileges are an important consideration in the borrowing process and can prove costly if not given due attention. Almost all mortgages available in the market require borrowers to pay a penalty if they seek to pay off all or part of their mortgage, before the end of the mortgage term.
Typically, a pre-payment penalty is the higher of three month’s interest or interest rate differential for the remaining term. Interest Rate Differential is the amount of interest between the mortgage interest rate vs. the current interest rate, over the remaining period of the loan term. Urgent Mortgages Inc. can help you find a mortgage that suits your needs and circumstances with reasonable options to pre-pay without paying huge penalties.
The pre-payment calculations are complex and Urgent Mortgages Inc. can help you understand the basis of these charges. Opting for the lowest interest rate mortgage may not be the best alternative. Urgent Mortgages Inc. can walk you through the details of different mortgage options available and help you decide on a product that best suits your circumstances.