Kanetix Forum

Hi,
I have a mortgage at 5.1% fixed rate and term left is 2.5 yrs.The present mortgage is 2,90,000 while initial mortgage was 3,20,000.
Now if I break the contract I have to pay penalty almost 15000.

Can any body suggest me what are options for me?

Thanks in advance for time and help

Unfortunately it sounds like your mortgage lender is calculating your penalty based on I.R.D, otherwise known as Interest Rate Differential.  You must know upfront that no lender will pay the penalty of another lender which limits your availability to switch from one lender to another until the time of renewal. 

If you are looking for some extra cash, your only option is to try and apply for a second mortgage or get an unsecured line of credit since you do not have enough equity in your home to apply for a secured home equity line of credit.

Paul Sidhu, Principal Mortgage Broker at KTX Financial Ltd.

Neither Kanetix® nor the KanetixForum.ca is a mortgage broker or agent. Although this information has been passed along to you from KTX Financial through the Forum, we are not responsible for the opinions expressed by them. Mortgages can be complicated. When reading these answers, keep in mind each person¿s situation is unique. Individual responses may vary depending on your lender, geographic location, and specific circumstances. If you have a similar situation, always speak with your mortgage provider, or a licensed mortgage representative, for terms and conditions that may apply to you.