What would it cost to break my mortgage?

Your bank

Balance owing today

Your fixed rate

Original term

Month your term started21 months left in the term.

Posted rate for your term when you signed

Filled with the Bank of Canada’s typical 5-year posted rate for 2023-08 (6.84%). Your mortgage documents show the exact figure.

Prepayment privilege you’ll use first

RBC: 10% lump sum a year, 10% payment increase every 12 months, plus Double-Up payments.

New rate you could get

RBC’s 2-year special, as a starting point.

Years left to pay off

yrs

RBC Royal Bank · estimated cost to break today

$8,951

IRD applies

3 months’ interest

$7,080

at 6.09%

IRD

$8,951

6.09% vs 4.99% × 21/12

Comparison rate

5.74%

RBC 2-yr posted, less your 0.75% discount

RBC: greater of 3 months’ interest or the IRD against its posted rate for the closest term (2-yr posted), less your discount.

Is breaking worth it?

Moving to 5.14% would save about $7,498 in interest over the 21 months left, so you’d be $1,453 behind after the penalty. Waiting for renewal, or porting, is likely cheaper.

Break-even new rate: 4.96%. Below that, breaking pays before your current term would have ended. Ignores legal, appraisal and discharge fees. For a full refinance break-even with fees, see Revalued.ca.

Waiting cuts the penalty

If posted rates stay where they are, waiting 6 months brings the estimate to $6,994; at maturity it’s $0. Early renewal at RBC: Up to 120 days early, no penalty.

Three ways to pay less

Prepay first. Using this year’s privilege first lowers the base the penalty is charged on (10% lump sum a year, 10% payment increase every 12 months, plus double-up payments.)
Port instead of breaking. Port when buying and selling at the same time; extra money can be blended at the current rate.
Blend and extend. FCAC describes early renewal at a blended rate as a way to avoid a full penalty. Ask RBC for a quote.

RBC’s own penalty page ↗ · always get the bank’s written payout figure.

The same mortgage at each big bank

Same balance, rate, discount and time left, priced with each bank’s own posted table (Nov 2, 2026) and the formula it publishes. This shows how much the bank’s penalty rule and posted table matter.

Bank	Estimated penalty	3 months’	Compares with
RBC	$8,951	$7,080	2-yr posted 5.74%
TD	$11,799	$7,080	2-yr posted 5.39%
National Bank	$13,011	$7,952	1- and 2-yr rates, interpolated for 21 months 5.30%
Scotiabank	$13,020	$7,080	2-yr posted 5.24%
CIBC	$13,020	$7,952	2-yr posted 5.24%
BMO	$15,461	$7,080	2-yr posted 4.94%

Estimates use simple interest over the months left (as in FCAC’s example); RBC and Scotiabank say they use a present-value basis, which lowers the real figure somewhat. For a term over five years broken after year five, the Interest Act caps the charge at 3 months’ interest, and the analyzer applies that. Today’s month is taken from your device; rates are as published on November 2, 2026.

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