When breaking a mortgage, there is often a mortgage prepayment penalty that homeowners need to understand. Mortgage penalties are a way for lenders to recoup some lost profits when a client breaks or cancels a mortgage. Mortgage cancellation is something that also happens so make sure you understand the mortgage cancellation fee before proceeding.
This is why it’s a good idea to really sit down and review the mortgage commitment when you receive it from the lender before signing. By understanding the terms of your mortgage, you will have a better idea of what to expect down the road if and when you decide to sell your property, or have your mortgage refinanced.
Watch this episode with mortgage broker Tracey Brock of Dominion Lending Centres where Tracey will explain everything you need to know about mortgage penalties.
For more information on financing, or if you need a mortgage broker, contact Tracey Brock of Dominion Lending Centres.
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