Finally! After two years of waiting, the Finance Department has announced a new “code” that will force banks and lenders to clearly state how their pre-payment penalties will be calculated and explain to the consumer how they can pay off their mortgage faster, without incurring any penalty.
This article explains all of the changes.
RMG told me that I still have a 3 month penalty even though my mortgage is up for renewal in October 2013. I made the payment on 15th of July. Just wonder if they calculate the 3 month penalty to be for payments of aug, sept and oct. If I wait another month will this get rid of the penalty since it is less than 3 months left until renawal?
thank you
jim
Hi Jim,
If you wait another month, your penalty should decrease. A lender cannot charge more interest than what is remaining in your contractual term.