Home Mortgage Rates

Term Rate
Prime 3.00%
Variable 2.90%
1 Year 2.89%
3 Year 2.69%
4 Year 2.95%
5 Year 3.09%
10 Year 3.89%

Qualifying Rate

Feb 3 5.29%

Current Inflation

Dec 2.3%

5 Year Bond Yield

Feb 3 1.36%

Next Bank of Canada Meeting
Mar 8th, 2012

Special conditions apply
Mortgage Rates subject to change.

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IRD (Interest Rate Differential) penalties & calculations

The big banks introduced IRD (Interest Rate Differential) penalties in 2005 as a way to earn more profits from fixed terms canceled before completion. The concept sounds reasonably fair except the IRD calculations are not standardized which are controversial. The clear issue here is banks are able to manipulate how they charge their IRD penalties which can become unreasonably expensive for mortgage holder looking to cancel his or her mortgage early. Recently the government has promised to bring forward regulations to govern mortgage pre-payment penalties. We are hoping to have something in place by the end of the year. I think this is a major breakthrough for the mortgage industry and you as a consumer. Stay posted for further details.

Click here to figure out your penalty and run IRD calculations

People will cancel a mortgage early for a number of reasons:

  • Sold their property early and aren’t purchasing another property
  • Their existing rate is far higher than current mortgage rates
  • A refinance is required to consolidate date

Here’s a trick to avoid paying an IRD penalty. When you sell your home before your mortgage term is complete, simply request your mortgage broker to port the mortgage to the new property.

 

One Comment

  1. Leah Zavaglia says:
    August 13, 2010 at 2:09 pm

    Hi Jesse, can you give a couple examples of how banks can manipulate how they charge IRD penalties.

    Thanks,and by the way, I really look forward to your emails. They are very informative compared to other brokers!

    Leah : )