Tag Archive: prepayment penalties


Bond Rates, Highest Since April

A scattering of lenders are starting to warn of impending rate increases. No surprise—given Canada’s 5-year bond yield, which drives fixed mortgage rates, hit a new relative high on Thursday. At 0.60%, it’s now the highest it’s been since April 9, 2020. When the 5-year yield was last at these levels, your typical discretionary 5-year fixed rate at a Big...

HSBC’s 0.99% Mortgage Rate Stirs Up Market

—The Mortgage Report: Dec 7— HSBC’s 0.99% variable-rate special remains the talk of the industry. Consumers have noticed, too. Online mortgage searches are up nearly 50% in the last week, according to Google Trends. Here’s more of the latest on HSBC’s headline-making offer: January 3, 2021, is officially the last day to apply, according to HSBC’s terms and conditions. It’s...

Divorcing 1.99%

— The Mortgage Report : June 18 — For Better or Worse: When you take a bank’s 5-year fixed you’re married to it for half a decade. That is, unless you file for divorce, so to speak (i.e., discharge or transfer the mortgage to a new lender early). But as unwedded people find out, splitting up has a financial price....

Mortgage Penalties Make News…Again

The Mortgage Report – June 1 Penalty Boxed: Despite a horrid mortgage market in Q2, banks still booked $5 billion in profits. But they aren’t cutting people much slack on mortgage penalties, even folks who break their mortgage early due to COVID-related income loss—as this CBC story chronicles. Banks have some great mortgage products (e.g., BMO’s Cash Account, Scotiabank’s STEP,...

Competitors Attack Banks on Mortgage Penalties

If there’s one thing the major banks wish would go away, it’s talk about their fixed-rate mortgage penalties. Competitors constantly use accounts of huge bank penalties to sell against the banks, and the media picks up on it. Expect more of this as mortgage penalties approach record highs. In the last few months, we’ve seen non-bank lenders increasingly market their...

Fair Penalty Lenders: Which Lenders Have the Lowest Mortgage Penalties?

Which lenders have the best (lowest) mortgage prepayment penalties? It’s a question we’re asked continually. So we’ve now created a list of them. If you want to know if your lender will treat you fairly (i.e., charge you a reasonable penalty for breaking your mortgage early), read on. What’s a “fair penalty?” A fair penalty is a mortgage prepayment charge...