The Wright Sisters Group | Union Realty Brokerage Inc. - The Beaches, Leslieville, Riverdale and East York Real Estate Specialists – Your East End Toronto Real Estate Team
06 June 2019

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Did you secure a new mortgage or renew/refinance an existing mortgage in January to March 2019?  If so, you may have less than a month to unlock $10,000+ in interest savings by following the below strategy:

Why is there an opportunity for savings?  Over the past 6 months we have seen an incredibly steep and rapid drop in 5-year fixed rates given a change in the economic data and outlook.

Who can potentially save $10K, $20K, or more?  If you, or someone you know, secured a mortgage, or renewed or refinanced a mortgage in January to March of this year, you are a very good candidate to take advantage of this opportunity. 

How does it work?  If someone breaks their mortgage within the first 6 months, there is a good chance they will be limited to a 3-month interest penalty vs. the typically higher Interest-Rate-Differential “IRD” penalty (depending on lender and product type).  Given the rapid reduction in 5-year fixed interest rates, the net saving of replacing your mortgage at current rates, can result in significant savings.

Example - $600,000 Mortgage Balance ($14,674 Net Savings**)

Existing 5yr Fixed Rate = 3.69% (for illustration)

Sample Replacement 5yr Fixed Rate = 2.99%* (lower rates may be available)

Interest Savings = $20,209

3-month Interest Penalty = $5,535

Net Savings = $14,674**

*Contact the mortgage brokers/experts at Outline Financial to secure current rates and unpublished rate specials from over 30 banks, credit unions, and mono-line lenders.

**Other costs may include legal and/or appraisal fees.  Above example is for illustrative purposes only and subject to the details and qualification of each specific scenario.

Timing? Timing on this is critical.  If you think you may benefit, please act as soon as possible.  Given rates flattened out shortly after Feb/Mar there is only about a one-month window of opportunity remaining, after which time the breakage penalty may outweigh the benefit.

Who do I contact to find out if I can save money?  Our go to mortgage experts at Outline Financial are on stand-by to provide you with a no obligation analysis of your options.  While you will benefit from their access to over 30 banks, credit unions and mono-line lenders, if it makes sense for you to stay with your existing lender, Outline Financial will also provide advice on how to implement this strategy to “early renew” your mortgage to access you current lenders’ lower rates.

You can contact Outline Financial anytime by calling 416-536-9559 or send an email to  Please mention this newsletter and reference the Rapid Rate Drop StrategyTM

Olena Vus, Mortgage Agent Outline Financial
Tel: (416) 799-1152

Joanna Lang, Mortgage Agent Outline Financial
Tel: (416) 834-1590