Pay Out Penalties

If you are planning on selling your house you will want to check to see if you have a pay out penalty on your mortgage.  In most cases it is 3 months interest or an interest differential.  The interest differential is based on the amount that you would pay the bank for the duration of you mortgage in interest compared to todays rates.  Make sure you contact your bank to find out the amount so that you don't get any surprises.    We are seeing a number of people who are not able to sell their house because of high pay out penalties.  Ask your bank or mortgage broker about these penalties.  Perhaps you can port your mortgage to avoid a pay out penatly.  

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