Renewing Your Mortgage
Your mortgage is up for renewal and you received your mortgage renewal documents.
Helpful information about mortgages
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.
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.
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, a prepayment penalty will be calculated on the amount over 10%.
Prepayment charges are calculated for Closed Mortgages in the following circumstances:
Fixed Interest Rate Mortgages
Variable Interest Rate Mortgages
Please Note: Mortgage Loan Default Insurance should not to be confused with Mortgage Life Insurance.
To see current CMHC standard premium percentages for a typical purchase transaction of a residential property visit CMHC's site by clicking here.
Visit CMHC Mortgage Loan Insurance for a list of additional Mortgage Loan Insurance Premiums and further details on Mortgage Default Insurance.
Please contact your Account Manager for further details.
Tips: How to avoid the charge?
|Paying more than your prepayment privileges allows||3 Months Interest||Track the value of your annual prepayments carefully to ensure they don't exceed 10% of the original principal amount in year 1 and year 2|
|Paying your mortage in full prior to the maturity date||3 Months Interest, Other Fees may apply (i.e. Mortgage Discharge Fee and/or Mortgage Reinvestment Fee)||If you are prepaying your mortgage in full prior to your maturity date, the 10% prepayment charge including other fees will not automatically be applied|
|Refinancing (increasing your mortgage balance) before the maturity date||3 Months Interest, Other Fees may apply (i.e. CMHC Mortgage Loan Insurance premium on increased loan amount)||If you feel you may want to refinance at some point in the near future, consider choosing an open or short-term mortgage|
|Transferring your mortgage to another lender before the end of your term||3 Months Interest, Other Fees may apply (i.e. Mortgage Assignment Fee)||If you feel you may want to refinance at some point in the near future, consider choosing an open or short-term mortgage|
We have taken the confusion out of estimating prepayment charges. To proceed, you want to determine what Prepayment Privileges your existing mortgage may have, adhering to these privileges could help you avoid paying a prepayment charge altogether. Next, determine what the prepayment charges are:
Peace Hills Trust prepayment charge is 3 months’ additional interest payment if you pay more than the prepayment privilege allows.
Last, estimate your prepayment charge.
Our Prepayment Penalty Calculator (click here to view) is simple and easy to use, just click to start. You can also use this simple step by step formula to provide you with your estimate: How to manually estimate the 3-month Prepayment Charge
What is the amount you want to prepay on your mortgage over and above the prepayment privilege amount, if any, in your mortgage agreement?
|2nd Step:||What is your Current Interest Rate expressed as a decimal? (Example: 4.55% = .0455)
|3rd Step:||A) X (B) = (C)
(C) ÷ 4 =(D)
(D) = The estimated 3-month Prepayment Charge
If you currently have a Closed Mortgage, there are options available that can help you reduce your mortgage balance quicker and avoid paying prepayment penalties to the lender.
Assuming Mortgage is $100,000
|Monthly Payment: $581.60
Total Payments: $174,482.96
Total Interest: $74,482.96
Regular Payment Method
Accelerated Payment Method
Regular Weekly Payment: $134.00
Accelerated Weekly Payment: $145.40
|Regular Bi-Weekly Payment: $268.14
Total Payments: $174,285.22
Total Interest: $74,285.22
Mortgage Paid Off: 25 Years
|Accelerated Bi-Weekly Payment: $290.80
Total Payments: $162,395.46
Total Interest: $62,395.46
Mortgage Paid Off: 21.5 Years
Total Interest Saved: $11,889.76
Choose an Open Mortgage
If you currently have a Closed Mortgage, there are options available that can help you reduce your mortgage balance quicker and avoid paying prepayment penalties to the lender. Here’s how:
Administration Fees that may apply if you prepay your mortgage in full include:
Note: Legislation may restrict the lender from charging a Mortgage Assignment Fee in certain Provinces and Territories.
For Information on administration fees applicable in the above instances, please contact your local regional office and speak to an Account Manager.
Should you wish to speak to a Mortgage Representative regarding prepayment charges or you want to discuss your prepayment options respect of your Peace Hills Trust mortgage: