Huge Mortgage Prepayment Penalty?We Can Help
If you currently have a closed mortgage on your home, you may be faced with paying your financial institution a mortgage prepayment penalty when you discharge your mortgage. Depending on the amount of your mortgage, the interest rate and the remaining term, the mortgage prepayment penalty can be pretty hefty. In some cases, it could be in the tens of thousands of dollars.
Interest Rates are Working Against You
It’s very likely that the interest rate on your mortgage is much higher than current rates, which are at or near record lows. If that’s the case, you will have to pay your lender for the interest they are losing for the rest of the mortgage term.
It may not seem fair but that’s the way the system works.
How much is your mortgage prepayment penalty? Only your lender can tell you the exact amount but here’s an example to give you an idea. If your mortgage balance is $300,000, its interest rate 4% higher than current rates, and 2 years remaining on the term, your prepayment penalty might be around $21,000. Ouch!
But there is something you can do to reduce the prepayment penalty.
Every Cloud Has a Silver Lining
As our motto states, we are “The Friendly Law Firm That Saves You Money”. We make it our business to provide great value and try to save our clients from costly issues whenever we can.
You can’t avoid your mortgage prepayment penalty – it’s part of your mortgage agreement. But we may be able to help take some of the sting out of the bite.
We have been very successful helping many clients reduce their prepayment penalties and there’s a good chance we can do the same for you.
You Could Save Thousands
Depending on the lender, your savings may be anywhere from 10 – 25% of the prepayment penalty. In some cases, the savings have been several hundred dollars. In others, our clients have saved thousands, as much as $8,550!
It is perfectly legal to reduce your mortgage prepayment penalty, but most people don’t even know it’s possible.
What Could You Do with an Extra $1,000, $3,000 or even $8,000?
It’s like found money. Money you never expected back in your pocket. Just imagine all the things you could do. You could invest it in the stock market or buy appliances for your new home. You could add to your RRSP or pay all your moving costs. You could even take an extra, well-deserved vacation.
There’s Absolutely No Risk to You
Here’s the best part: you only pay us if we’re successful. If we can’t reduce your prepayment penalty, you only pay our regular, affordable fees and disbursements for the sale of your home or mortgage refinancing. And we’ll let you know up front how much those fees are.
Call Today for a No-obligation Consultation
So many of our clients have told us that they never realized they could get their prepayment penalty reduced and they couldn’t wait to get started. You’re probably just as anxious to find out how much you may save.
Call us today at 403-225-2600 to schedule your free consultation. We will be happy to give you our advice on your potential savings, in person or by phone. To make life even easier for you, we also schedule weekend consultations.
Mortgage Prepayment Penalty Reductions in Alberta and BC
You don’t have to live in Calgary to reduce your mortgage prepayment penalty. We are members of the Alberta and BC Law Societies and can help anyone who lives in either province.
If you can’t come to our offices, give us a call. We’ll look after you just as we would if we lived in your community.