Mortgage Tip: Know the numbers before breaking your mortgage early.

Thinking about breaking your mortgage early to take advantage of low interest rates?

Tip:  First know your numbers!

Breaking your contract for a lower interest rate can save you money over time, depending on the penalty and the size of your outstanding mortgage.  If you hold a variable rate mortgage, then expect to pay a penalty of three months interest, and if you hold a fixed rate mortgage, then you will pay the greater of three months interest or interest rate differential penalty (IRD).