If you want to make a lump sum pre payment larger than your current mortgage allows, use this calculator to see what charges may apply.
Upon discharge of a mortgage associated with Manulife Bank, a discharge preparation fee applies. This fee is $375 and is subject to change and provincial regulations.
Prepayment privileges are available when your mortgage is not in default. Prepayment privileges cannot be used on a prepayment in full (discharge).
Without paying a prepayment charge you may:
- in each 12-month period*, prepay up to 20% of the original principal amount of your Mortgage Portion; and
- once in each 12-month period*, increase the regular payments of principal and interest under your Mortgage Portion by an additional amount not exceeding 25%.
*12-month period refers to each year of the term (that is a year starting on the date on which the term begins, and any time prior to each anniversary of that date).
You will pay a prepayment charge if you pay more than the prepayment privilege allows.
Fixed-Rate Mortgage Portion prepayments can be made at any time, upon payment of the higher of these two amounts:
- Three months interest costs on the amount you want to prepay; or
- The interest rate differential; the difference between your mortgage rate and the rate of a mortgage that is closest to the remainder of your term, multiplied by the outstanding balance of your mortgage for the time that is left on your term. It is calculated on the amount of principal being prepaid.
Variable-Rate Mortgage Portion prepayments can be made at any time, upon payment of three months' interest costs on the amount you want to prepay.
Find out what lump sum payment or payment increase you can make without incurring a prepayment charge.Prepayment Calculator