Post # 1
Before I met DH, I bought a house and got a standard 5 year term. That term is up in march, so we’re toying with the idea of buying a bigger house. We could afford it, however, it also wouldn’t be the end of the world if we waitEd one more year.
Here’s my question: what’s the penalty for breaking a mortgage if we were to stay anotheryear, Andy had to agree to another term?
Also- we’re in canada
Post # 3
You don’t have to do a 5 year term. There are 1 year terms.
Post # 4
The penalty is often 3 months interest in Canada. Any financial institution can give you this information when you renew your mortgge.
If you use a mortgage broker, the fee is paid by the lender and the broker can find you the best mortage for your needs.
Post # 5
There are also mortgages that are portable. It sounds like you need to sit down with someone and go over your options. I agree with Julies, get a mortgage broker and they can help and show you all your options instead of what’s available at one institution.
Post # 6
first of all, you don’t have to lock in for another 5 years. you can do as little as 6 months. however, you can tranfer whatever is left on your mortgage to another property. the only time that there is a penalty is if you cancel the mortgage (or pay it off completely) prior to the end of the term.
i would suggest to get whatever the best rate is for your mortgage renewal in march and then transfer it to your new bigger house whenever you get it. is your husband’s name on the mortgage now? if not, i would probably make that change when you renew your mortgage or buy a new home.
discuss your options with your financial institution.