Mortgage Prepayment Calculator

When you decide to pay off your mortgage in full before the end of your term or make a prepayment greater than your allowable prepayment options, you may be required to pay a prepayment charge.

Did you know? If you have an open mortgage, you can prepay any amount at any time without having to pay a prepayment charge. If you have a closed mortgage, you can take advantage of your prepayment options (prior to requesting a payout statement) to reduce any applicable prepavment charges.

For a variable rate closed mortgage (including Homeowner ReadiLine® variable rate closed installments), the prepayment charge will be equal to three months' interest calculated at the interest rate applicable to the mortgage on the day of prepayment.

For a fixed rate closed mortgage (including Homeowner ReadiLine fixed rate closed installments), and the low-rate fixed closed mortgage if you are selling your property or refinancing into another BMO mortgage, the prepayment charge will be the higher of three months' interest calculated at the applicable fixed interest rate or an amount calculated using interest rate differential (IRD). However, if the term is greater than five years and you prepay after the 5th year, the prepayment charge will be equal to three months' interest.

The interest rate differential is the difference between your existing mortgage interest rate and the interest rate currently charged for a mortgage similar to your mortgage for the remaining term of the loan taking into account any rate discount you may have received.

Cashback is a cash payment amount that you may have received from BMO when your mortgage term began with the condition your mortgage remains with BMO for a minimum of 5 years . If the mortgage is paid off prior to the end of 5 years, you are required to pay back a pro-rated portion of that amount.

If you redeemed FirstHome Dollars to reduce the amount of your mortgage, the same requirement applies. If your mortgage is paid off prior to the end of the 5 years, you are required to pay back a pro-rated portion of the FirstHome Dollars benefit that you received. To find out the amount you may be required to repay as a result of redeeming Firsthome dollars and ending your mortgage term prior to the end of the 5 years, visit your branch or call
1-855-284-1766.