How can mortgage prepayment charges be avoided?

 

You have a number of options available to prepay your mortgage and avoid prepayment charges:

Portability

If you’re selling and buying a new home, your mortgage may have a portability option that allows you to Port your existing mortgage term, outstanding principal balance and maturity date to a new property.

Assumption

If you’re selling your home, the purchaser may have the option of applying to assume your mortgage with the existing terms and conditions on closing.

Open mortgage

Enjoy the flexibility to pay off as much of your mortgage any time without paying a prepayment charge.

Subject to approval and eligibility based the terms of the mortgage.

Contact me to learn more about assuming someone else's CIBC mortgage, or having a potential purchaser assume your CIBC mortgage.

There are also ways to save thousands of dollars in interest payments breaking your mortgage early, paying the discharge penalty, and not being "out of pocket" for the expense.

Steven Porter, Mortgage Advisor - CIBC, 1-888-885-8962, steven@stevenporter.ca