Managing Your Mortgage

Managing Your Mortgage

Transferring Your Mortgage to Us

Is your mortgage up for renewal?  Transferring your mortgage has never been easier!

As a homeowner, you have many options available to you. Our mortgage specialists are available to discuss options available to you based on your financial goals.  They will help find the right mortgage product to suit you.

Renewing Your Mortgage

Your mortgage is up for renewal and you received your mortgage renewal documents. Our credit team can make your mortgage renewal process effortless.  To choose the mortgage terms that fit your circumstances you need the advice of a mortgage professional.  Your financial goals are important to us.  Talk to us about how much you can save by reducing your amortization.

Mortgage Prepayment

You want to make a prepayment on your mortgage, but you are unsure how much you can pay without incurring a prepayment penalty.  Our standard, closed mortgage terms allow you to prepay up to 10% of the original principal mortgage balance each year without penalty.  This prepayment privilege is non-cumulative, meaning if you wish to pay 25% of the original principal balance in any given a prepayment penalty will be calculated on the amount over 10%.

Prepayment Penalty Charges

Peace Hills Trust prepayment charge is 3 months’ additional interest if you pay more than the prepayment privilege allows.  Prepayment charges are calculated for Closed Fixed and Variable Rate Mortgages in the following circumstances:

•    If you pay more than 10% (non-cumulative) of the original principal balance of the mortgage in each 12 month period, the cost is a 3-month additional interest on the amount over 10% that is prepaid

Peace Hills Trust does not use the Interest Rate Differential (IRD) method to calculate a prepayment charge against any of its mortgage products, making it easier for you to determine the cost verses advantages of mortgage prepayment.

Manually Estimate Your Prepayment Charge

Ex:  Joe & Mary’s original mortgage amount is $350,000 which means they can prepay – without penalty - up to 10% or $35,000 per year.  They recently won the 50-50 at the football game and now have an extra $47,000 to pay down their mortgage!

1st Step:
(A)

Enter the amount you want to prepay on your mortgage that is above the prepayment privilege amount (i.e. over 10% of the original principal balance), in this example $47,000 - $35,000

 

$12,000.00

Your Amount you want to prepay
(A)

2nd Step:
(B)


Enter your current interest rate expressed as a decimal (example: 3.95% = 0.0395)

0.0395%

Current Interest Rate
(B)

3rd Step:
(C)

Multiply (A) X (B)

 

$474.00

Multiply (A) X (B) = (C)

4th Step:
(D)

Divide the result of (C) by 4

$118.50

(C) divided by 4 = (D)
This is your estimated prepayment penalty