Mortgage prepayment penalty calculator

If you wish to repay your mortgage in part or in full before its maturity date, you may be required to pay a penalty as indicated in the “Cost of Borrowing Disclosure Statement”, which you received when your mortgage was issued, modified, renewed or refinanced, whichever is latest.

There are two types of penalties: the penalty associated with the mortgage and the penalty associated with the promotion. The penalty associated with the mortgage is calculated according the procedure described in the “Cost of Borrowing Disclosure Statement”.

The penalty associated with the promotion is calculated according to the procedure described in the “Mortgage Promotion Agreement”, which could include, for example, cashbacks or other fees.

This calculator can estimate the amount of the penalty for you.

Before starting, make sure you have the following documents on hand:

Your most recent "Cost of Borrowing Disclosure Statement" that contains the following information:

  • The mortgage typeBullet
  • The term of the loanBullet
  • The interest rateBullet
  • The posted rate (in the case of a fixed rate)Bullet
  • The initial amount of the loanBullet

Your mortgage balance

  • You can get it through LBCDirect or by consulting your latest Super Statement.Bullet

Your "Mortgage Promotion Agreement" (if applicable), which contains the following information:

  • The amount of the promotionBullet
  • The repayment method (total or pro-rata)Bullet


The calculator cannot estimate the penalty if:

  • your property has six units or more;Bullet
  • you have an adjustable-rate mortgageBullet

No penalty is applicable to a prepayment if:

  • your mortgage is scheduled to mature within the next 30 daysBullet
  • the prepayment amount is less than or equal to the mortgage prepayment privilege of 15%, as per the conditions described in your "Cost of Borrowing Disclosure Statement" (for a closed term loan)Bullet
  • Your loan is open term.Bullet

This calculator enables you to estimate, as a guideline only, the penalty applicable to a partial or total prepayment of your mortgage. Please note that it is not an official Bank statement. The amount of your penalty is based on the posted rates in effect on the date the calculator is used, combined with the information you provide. To learn the exact amount of your penalty, please call us at 1 877 522-3863, Monday to Friday from 8 a.m. to 8 p.m.