Mortgage penalty by lender / Simplii Financial
Simplii Financial mortgage penalty calculator
If your mortgage is with Simplii Financial and you are thinking about breaking it early, this page sets out how Simplii Financial 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 Simplii Financial can give you the actual figure.
MortgageSkip is independent and is not affiliated with, endorsed by, or acting for Simplii Financial. Lender details summarised from Simplii Financial’s own published information, last reviewed September 28, 2026.
Simplii Financial at a glance
- Fixed-rate closed mortgages
- The greater of three months' interest on the amount you are prepaying and the interest rate differential (IRD).
- Variable-rate closed mortgages
- Three months' interest on the amount you are prepaying.
- Annual prepayment privileges
- Simplii describes mortgages with annual prepayment privileges as high as 20% of the original principal (not available on all mortgages), and, on fixed-rate closed terms of two years or more, one payment increase each mortgage year of up to 25% of the payment set when you entered or last renewed. 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
- Simplii Financial publishes its own prepayment charge calculator, which is the more authoritative estimate for an existing Simplii Financial mortgage. Open Simplii Financial’s calculator.
Estimate a Simplii Financial penalty
The calculator below is pre-set to the way Simplii Financial 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.
Your current mortgage
Pre-set for Simplii Financial, based on how it describes its prepayment charge. You can change it if your contract says otherwise.
Using a posted rate of 6.05% for the 3.0 years you have left, less a discount of 1.84 points worked out from your start date and rate. Posted rates are the big-bank average published by the Bank of Canada, 2026-09-23; your own bank’s may differ.
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.
Your break analysis
Technically yes — but below your savings threshold
Savings of $14,031 — below your $15,000 threshold
Breaking now would save about $14,031, 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 $398 per payment.
Over the comparison window you pay $14,338 less, but owe $307 more at the end.
Estimated break penalty
IRD $9,291 vs 3-month interest $6,745 — IRD applied
IRD measured against 4.21%: posted rate less your original discount, the bank method
Measured the other way the IRD would be $14,798. Lenders differ, and only a payout statement settles it.
$9,291
If you stay
If you break
Balance detail at break date
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 Simplii Financial measures the penalty
Simplii describes the fixed-rate charge as the greater of three months' interest and the interest rate differential. It words the IRD as the difference between interest over the remaining term at your current rate plus any discount you received, and interest at Simplii's current posted rate for a mortgage product it determines to be similar to yours. That works out the same as posted rate less discount. For a variable-rate closed mortgage, Simplii describes three months' interest on the amount you are prepaying.
In the calculator this is the "big bank or credit union" setting: the interest rate differential is measured against a posted rate for the time left, less the discount you were given when you signed. The calculator uses the Bank of Canada's average big-bank posted rates, and Simplii Financial's own posted rates may differ, which is one reason your figure may not match.
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 Simplii Financial for a payout statement, which is the figure that counts.
Source: Simplii Financial, Prepayment options. Reviewed September 28, 2026. If something here has changed, we would like to hear about it through the contact page.
Questions about a Simplii Financial penalty
- How does Simplii Financial calculate its mortgage prepayment penalty?
- For a fixed-rate closed mortgage, Simplii Financial describes the charge as: the greater of three months' interest on the amount you are prepaying and the interest rate differential (IRD). The IRD is measured against Simplii Financial's posted rate, adjusted for the discount you received when you signed. Your mortgage contract governs, and only Simplii Financial can give you the actual figure.
- What is the penalty for breaking a Simplii Financial variable-rate mortgage?
- Simplii Financial describes the charge on a variable-rate closed mortgage as: three months' interest on the amount you are prepaying. On a $400,000 balance at 5%, three months' interest is about $5,000.
- How much can I prepay on a Simplii Financial mortgage without a penalty?
- Simplii describes mortgages with annual prepayment privileges as high as 20% of the original principal (not available on all mortgages), and, on fixed-rate closed terms of two years or more, one payment increase each mortgage year of up to 25% of the payment set when you entered or last renewed. 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 Simplii Financial have its own mortgage penalty calculator?
- Yes. Simplii Financial publishes a prepayment charge calculator on its website. For an existing Simplii Financial mortgage it is a more authoritative estimate than a general calculator like this one, and a payout statement from Simplii Financial is the figure that counts.
- Why might Simplii Financial's figure differ from this estimate?
- This calculator uses the Bank of Canada's average big-bank posted rates and the numbers you enter. Simplii Financial'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 Simplii Financial.