Understanding prepayment charges

When prepayment charges may apply to you

Depending on how you choose to manage your mortgage and your payments, there may be times when you have to pay additional charges.

Prepayment charges apply to closed mortgages in the following scenarios:

When you:
  • Sell your home and choose to pay out the mortgage prior to its maturity date
  • Renew your mortgage prior to its maturity date
  • Pay an amount greater than your allowable prepayment privileges
  • Refinance your mortgage
  • Transfer your mortgage to another lender
Based on the type of mortgage product you have with us, prepayment charges are calculated in different ways:

*Interest Rate Differential (IRD): the difference between your current mortgage interest rate and the current First National interest rate on a replacement mortgage for the time remaining on your mortgage term.

**Prepayment penalties are subject to change based on changes in interest rates, the passing of an anniversary date or upon the conditions set out in certain mortgage products. Please refer to your mortgage documents, log onto My Mortgage or contact our customer service team at 1.888.488.0794 for more information.

NOTE: If, at the time of prepayment, there are less than three months remaining before a closed mortgage matures, a per-diem prepayment charge applies for the duration of the remaining term (calculated using the current First National posted interest rate).

Use First National’s prepayment calculator to estimate potential prepayment charges that may affect your mortgage. Your prepayment privileges are outlined in your mortgage documents.

There are other charges that could potentially apply when paying down or paying off your mortgage:

  • If you prepay your mortgage in full, an administration fee for the discharge request may apply.
  • If you received cash back with your loan and are prepaying your mortgage in full, you may be required to reimburse a portion of the cash back amount.

For questions about these charges, please contact Customer Service at 1.888.488.0794 from 8:30am to 8:00pm (EST), Monday through Friday or by email at

Additional information: