How does First National calculate its mortgage prepayment penalty?

For a fixed-rate closed mortgage, First National describes the charge as: the greater of three months' interest on the amount being prepaid and an interest rate differential (IRD) amount. The IRD is measured against the rate First National currently offers for the time left on your term. Your mortgage contract governs, and only First National can give you the actual figure.

What is the penalty for breaking a First National variable-rate mortgage?

First National describes the charge on a variable-rate closed mortgage as: three months' interest on the amount being prepaid. On a $400,000 balance at 5%, three months' interest is about $5,000.

How much can I prepay on a First National mortgage without a penalty?

First National describes a lump sum of up to 15% of the original loan amount each year, counted from origination or renewal, and a payment increase of up to 15%, which it says applies only to fixed-rate mortgages. Amounts above these limits usually carry a prepayment charge. Privileges differ by product, so you may wish to confirm yours in your mortgage documents.

Does First National have its own mortgage penalty calculator?

Yes. First National publishes a prepayment charge calculator on its website. For an existing First National mortgage it is a more authoritative estimate than a general calculator like this one, and a payout statement from First National is the figure that counts.

Why might First National's figure differ from this estimate?

This calculator uses the Bank of Canada's average big-bank posted rates and the numbers you enter. First National's own rates, the exact term it compares against, how it counts the days remaining, and any fees can all change the result. These figures are estimates based on the information entered. MortgageSkip is not affiliated with First National.

Mortgage penalty by lender / First National

First National mortgage penalty calculator

If your mortgage is with First National and you are thinking about breaking it early, this page sets out how First National describes its prepayment charge and lets you estimate the penalty for your own numbers. It is an estimate based on the information you enter. Only First National can give you the actual figure.

MortgageSkip is independent and is not affiliated with, endorsed by, or acting for First National. Lender details summarised from First National’s own published information, last reviewed September 28, 2026.

First National at a glance

Fixed-rate closed mortgages: The greater of three months' interest on the amount being prepaid and an interest rate differential (IRD) amount.
Variable-rate closed mortgages: Three months' interest on the amount being prepaid.
Annual prepayment privileges: First National describes a lump sum of up to 15% of the original loan amount each year, counted from origination or renewal, and a payment increase of up to 15%, which it says applies only to fixed-rate mortgages. Prepayments within these limits generally carry no charge; amounts above them usually do. Products differ, so you may wish to confirm yours.
Online penalty calculator: First National publishes its own prepayment charge calculator, which is the more authoritative estimate for an existing First National mortgage. Open First National’s calculator.

Estimate a First National penalty

The calculator below is pre-set to the way First National measures a fixed-rate penalty. Nothing you enter leaves your browser. The result is an estimate, not a quote.

Mode

Enter just the essentials. We'll fill in the rest.

Four numbers to get started. The highlighted fields are pre-filled with realistic defaults — adjust them to match your mortgage. Switch to Advanced to change penalty method, comparison window and the shape of the new mortgage.

Your current mortgage

How much did you originally borrow?required

Your current interest rate (%)required

When did your mortgage start?required

New rate you've been offered (%)required

Mortgage term length

Amortization period

Payment frequency

Break / refinance date

Who is your mortgage with?

Pre-set for First National, based on how it describes its prepayment charge. You can change it if your contract says otherwise.

Minimum savings threshold

Only flag breaking as worthwhile if savings exceed this. Breaking involves legal fees and paperwork, so small savings may not be worth the effort.

Minimum savings to make it worthwhile$15,000

$1,000$50,000

Your break analysis

Technically yes — but below your savings threshold

Savings of $8,009 — below your $15,000 threshold

Breaking now would save about $8,009, which is less than the $15,000 you said would make it worth the effort. After legal fees and paperwork it may not be worth your time.

What to consider

Your payment drops by roughly $370 per payment.

Over the comparison window you pay $13,316 less, but owe $5,307 more at the end.

Talk to a broker

Estimated break penalty

IRD $14,798 vs 3-month interest $6,745 — IRD applied

IRD measured against 3.89%: today's rate for the remaining term

Measured the other way the IRD would be $9,291. Lenders differ, and only a payout statement settles it.

$14,798

If you stay

Your payment$3,405 / Monthly

Interest you'll pay$77,948

Balance at end$528,935

Total cost$651,506

If you break

New payment$3,035 / Monthly

Interest you'll pay$55,141

Break penalty$14,798

Balance at end$534,242

Total cost (incl. penalty)$643,497

Balance detail at break date

Outstanding balance today$573,558

Payments made so far24 payments

Periods left in term36 of 60 remain

Comparison window36 months

Penalty uses the Canadian semi-annual compounding standard. Actual lender penalties vary by contract and only your lender can give you a real payout figure.

For informational purposes only — consult a licensed mortgage professional before deciding.

How First National measures the penalty

First National describes the fixed-rate charge as the greater of three months' interest and an interest rate differential amount. Its IRD compares your mortgage rate with the current First National interest rate on a replacement mortgage for the time remaining on your term, rather than a posted rate less a discount. For terms longer than five years, it describes the charge after the fifth year as three months' interest. For a variable-rate closed mortgage, it describes three months' interest. First National also asks borrowers to check their own mortgage documents for their prepayment privileges.

In the calculator this is the "another lender" setting: the interest rate differential is measured against today's rate for a term close to the time you have left. In Advanced mode you can enter the rate First National currently offers for that term.

Every mortgage contract sets its own terms, and older or specialty products can differ from what a lender publishes today. If the scenario looks worth exploring, you may wish to ask First National for a payout statement, which is the figure that counts.

Source: First National, Understanding prepayment charges. Reviewed September 28, 2026. If something here has changed, we would like to hear about it through the contact page.

Questions about a First National penalty

How does First National calculate its mortgage prepayment penalty?: For a fixed-rate closed mortgage, First National describes the charge as: the greater of three months' interest on the amount being prepaid and an interest rate differential (IRD) amount. The IRD is measured against the rate First National currently offers for the time left on your term. Your mortgage contract governs, and only First National can give you the actual figure.
What is the penalty for breaking a First National variable-rate mortgage?: First National describes the charge on a variable-rate closed mortgage as: three months' interest on the amount being prepaid. On a $400,000 balance at 5%, three months' interest is about $5,000.
How much can I prepay on a First National mortgage without a penalty?: First National describes a lump sum of up to 15% of the original loan amount each year, counted from origination or renewal, and a payment increase of up to 15%, which it says applies only to fixed-rate mortgages. Amounts above these limits usually carry a prepayment charge. Privileges differ by product, so you may wish to confirm yours in your mortgage documents.
Does First National have its own mortgage penalty calculator?: Yes. First National publishes a prepayment charge calculator on its website. For an existing First National mortgage it is a more authoritative estimate than a general calculator like this one, and a payout statement from First National is the figure that counts.
Why might First National's figure differ from this estimate?: This calculator uses the Bank of Canada's average big-bank posted rates and the numbers you enter. First National's own rates, the exact term it compares against, how it counts the days remaining, and any fees can all change the result. These figures are estimates based on the information entered. MortgageSkip is not affiliated with First National.