Mortgage Pre-Payment Privileges allow you to pay down the principle of your mortgage penalty free! Every lender is different. Some lenders have “cheaper” rate options, but only allow 5-10% privilege annually. Standard pre-payment privileges range from 15-30% annually. This may not sound like an important feature if your goal is to simply pay the minimum monthly payments. But higher pre-payment privileges give you more flexibility if you ever need to break your mortgage term early (Selling, Refinancing, Renewing at lower rates etc.).
Kyle Wilson is a Mortgage Broker and CEO of Pragmatic Developments Inc. Living in Kelowna British Columbia. His passion is finance, budgeting, technology, and educating clients on innovative tools and resources to create an efficient and stable financial environment. Go to pragmatic.onl and contact him for financing and business development advice!