Updated November 2, 2026: Printable penalty report, plus guides on payout statements, HELOCs and brokers vs banks · rules re-checked against CMHC, OSFI and provincial sourcesWhat’s new →
CanadaMortgageCalc
ENFR中文
Owning

Mortgage Payout Statement in Canada: What to Ask For Before You Break

What a mortgage payout statement shows, why it is the only official prepayment penalty figure, and the questions to ask before you sign.

Updated November 2, 20262 min readBy the CanadaMortgageCalc team

An online penalty estimate tells you roughly what to expect. Your lender’s payout statement tells you what you actually owe to close the mortgage on a given date. Before you sell, refinance or switch, get the statement in writing.

What a payout statement includes

  • The payout date. The amount changes every day, because interest keeps accruing.
  • The principal balance on that date.
  • Accrued interest since your last payment.
  • The prepayment charge, usually three months’ interest or the interest rate differential (IRD), whichever the contract says.
  • Administrative or discharge fees, if your contract allows them.
  • The amount to send, and where and how to send it.

Why it matters more than an estimate

Lenders calculate IRD with their own comparison rates. Big banks often start from the posted rate for your remaining term, then subtract the discount you received. That can make the penalty several times larger than a calculator built from your contract rate alone. A written statement shows which method was used.

How to get one

  1. Call your lender and ask for a payout statement for a specific date, in writing (email or a letter counts).
  2. Ask which method the penalty uses: three months’ interest, or IRD, and how the comparison rate was set.
  3. Ask for the amount for a date near your closing, and ask how much it changes if the date slips.
  4. Keep the statement with your sale or refinance documents.

Check it before you accept

Compare the statement with your mortgage contract and your most recent statement. Check the balance, the rate and the months left in the term. If the penalty is much higher than your own estimate, ask the lender to explain the comparison rate in writing before you pay.

Options that may cost less

  • Use your prepayment privilege first, if your contract allows a yearly lump sum without penalty.
  • Port the mortgage to your new home, if the lender allows it.
  • Blend and extend with your current lender.
  • Wait, if you are close to maturity: at the end of the term there is no penalty.

This guide is general information, not legal or financial advice. Your contract and your lender’s written figures decide what you owe.

Try it with your numbers: Print a penalty estimate →