Contracts 32-34
There may be a prepayment charge levied for repaying your mortgage or making a partial prepayment in accordance with your mortgage agreement.
The prepayment charge calculation may vary if you make a prepayment on or before the 3rd anniversary date or after the 3rd anniversary date.
If you make a payment on or before the 3rd anniversary date, an applicable percentage will apply as shown in the table below. If you make a prepayment after the 3rd anniversary date, the prepayment charge will be 3 months' interest on the funds you are paying us.
Please refer to your mortgage agreement for more information on prepayment charge calculations, how payments are applied, and possible prepayment privileges available.
If you have any questions, please contact HomeEquity Bank by calling us between Monday and Friday 8:30am - 7:00pm ET toll-free at 1-866-331-2447 or emailing ClientRelations@heb.ca. A member of our client relations team will be happy to assist you.
Depending on when you obtained your mortgage, you can use the applicable calculator below to estimate your prepayment charge.
| Time of Payment | Percentage for Calculation |
| On or before the 1st anniversary date | 5% |
| After the 1st anniversary date but on or before the 2nd anniversary date | 4% |
| After the 2nd anniversary date but on or before the 3rd anniversary date | 3% |
There may be other associated fees and charges that may apply when repaying and discharging your mortgage. Please refer to your mortgage agreement or our online fee schedule, or contact our client relations team for more information.
Please note:
If you have the CHIP Income Advantage product, you will need to calculate the prepayment charge separately for both the ‘Lump Sum Account’, the account for lump sum advances that you have the option of taking and the ‘Planned Advance Account’, the account for your regularly scheduled advances and then add the amounts together for your total estimated prepayment charge.
If you have the CHIP Additional Funds product, you will need to calculate the prepayment charge separately for the ‘Reverse Mortgage Account’ the portion of your principal that does not require monthly payments and the ‘Additional Funds Account’ the portion of your principal that requires monthly payments (additional funds) and then add the amounts together for your total estimated prepayment charge.
If you have a Contract 32 and a fixed rate, the advised prepayment charge in your mortgage agreement is ‘the greater of 3 months’ of interest on the funds you are paying or the Interest Rate Differential (IRD). However, in line with the Interest Act requirements, your charge is capped at 3 months’ interest, therefore an IRD will not apply.
This information may help you analyze your financial needs. It is based on information and assumptions provided by you regarding your goals, expectations and financial situation. The calculations do not infer that the company assumes any fiduciary duties. The calculations provided should not be construed as financial, legal or tax advice. In addition, such information should not be relied upon as the only source of information. This information is supplied from sources we believe to be reliable but we cannot guarantee its accuracy. Hypothetical illustrations may provide historical or current performance information. Past performance does not guarantee nor indicate future results.
