How much can prepayments really save you?
A $500/month extra payment on a $400,000 mortgage at 5.5% saves $80,000+ in interest and shaves 7 years off your amortization. That's the power of prepayments — and it compounds the earlier you start. Enter your numbers below to see your exact impact.
📅 Prepayment Privileges
Most Canadian lenders allow 10–20% annual lump-sum payments without penalty. Check your mortgage contract for your specific limits — typically on your anniversary date.
⚠️ Prepayment Penalties
Breaking your mortgage early to refinance can cost 3 months' interest or the Interest Rate Differential (IRD) — whichever is greater. This can be tens of thousands of dollars.
📆 Accelerated Bi-Weekly
Switching to accelerated bi-weekly payments is the simplest prepayment strategy — it's equivalent to making one extra monthly payment per year with no lifestyle change required.