A prepayment charge, also known as a prepayment penalty or a discharge fee, is a fee charged by your mortgage lender if you pay off your mortgage before the specified term ends. Our office will request a mortgage payout statement from your lender which will set out any prepayment charge. We will provide you with a copy of the statement but please know we often don’t receive the statement more than 1-2 days prior to the Closing Date. You should know as well that the prepayment charge will change depending on current rates so if you requested an estimate of your prepayment charge at the time you listed your property, the prepayment charge at the time of sale and payout may be different. If you have any questions about the prepayment charge, please contact your mortgage lender.
