Mortgage (IRD) penalties, uncovered.

Mortgage (IRD) penalties, uncovered.

According to the statistics from Statistics Canada and CMHC – Approximately, 22,692 Niagaran’s per year break their 5 yr fixed rate mortgage with a Chartered Bank.


Statistics for Niagara (06/16):

(Chartered Bank – 74.18% national market share vs Credit Union/Monoline Lender – national market share 25.82% ):

447,888 people/consumers @ 27.9% mortgage holder rate = 124,961 residential mortgage holders @ 74.18% Chartered Bank mortgage holder = 92,969 Chartered Bank mortgage holders @ 60% fixed rate = 55,618 @ 68% 5yr fixed rate = 37,820 @ 60% early termination rate (breaking your mortgage before maturity) triggering IRD penalty = 22,692/yr. (multiply) net dif. on how IRD is calculated from Chartered Banks to some Credit Unions/monoline lenders – $6,947.25 based on the averages (Regional mortgage balance @ $214,758, breakage in month 36/60) = net losses est. $157,646,997/yr. based on the variation from how IRD is calculated from a Chartered Bank to some Credit Unions/Monoline Lender – if clients allowed me to suggest, different options, Niagara’s mortgage holders, would retain an est. additional – $157,646,997 per year.


I share with my clients, why and how, the difference in calculation occurs. This information is presented in a straightforward and easy to understand fashion. I enjoy sharing this with you – so you are better able to navigate the complex mortgage policies of today’s lending landscape.


By positioning you with a different lender with excellent interest rates, but who calculates this penalty differently than a Chartered Bank – my client’s have the benefit of being removed from a position of risk before it ever happens. I welcome all new clients to work with me and enjoy the security, my knowledge and experience provides.


Thank you,


Cameron Wilson, B.A. |  Mortgage Agent


Please contact me – 800-969-0014 |


CBC Article on (IRD) penalties:


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