Did you know that 60% of homeowners break their mortgage before the term ends?

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Most people focus only on the rate and completely overlook the terms — and that’s where costly surprises happen.

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Saving $15/month by choosing a lower rate means nothing if breaking that mortgage later costs you $20,000+ in penalties.

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Here are the 9 most common reasons people break their mortgages 👇

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1️⃣ Selling and Buying a New Home

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If you plan to move within the next few years, your mortgage needs to be portable.

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⚠️ Not all mortgages are — some lenders offer lower rates specifically by removing portability.

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If you port, you’ll need to requalify under current rules.

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2️⃣ Accessing Equity

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Home values have increased significantly over the years. Many homeowners want to pull equity to:

✔️ buy a rental property

✔️ invest

✔️ renovate

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This often requires breaking the mortgage.

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3️⃣ Paying Off Debt

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Rolling high-interest debt into a low-rate mortgage can save thousands.

But breaking the mortgage for a refinance triggers penalties.

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Still worth it in many cases — but only with proper math.

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4️⃣ Cohabitation, Marriage & Growing Families

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Life changes fast:

✔️ moving in together

✔️ selling one of two homes

✔️ outgrowing your space

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All can require selling or refinancing — and breaking the mortgage.

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5️⃣ Separation or Divorce

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With almost 43% of marriages ending in divorce, mortgage breakage is extremely common.

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If one partner buys the other out, refinancing is required — and penalties apply.

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6️⃣ Health or Major Life Events

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Unexpected events happen:

✔️ illness

✔️ job loss

✔️ death of someone on title

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These may force a refinance or sale sooner than expected.

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7️⃣ Removing Someone From Title

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Often used when:

✔️ parents helped you buy

✔️ they want to come off title later

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Some lenders allow a simple admin/legals fee.

Others force a full break → full penalty.

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8️⃣ Lower Interest Rates Become Available

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Sometimes breaking your mortgage to get a lower rate saves money long-term.

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But you MUST run the numbers.

We can calculate exactly when it makes sense.

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9️⃣ Paying Off the Mortgage Early

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A windfall (inheritance, bonus, sale of another property, etc.) may allow you to pay it off.

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Great — but again, penalties may apply unless structured correctly.

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💬 Final Thought

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Some of these reasons are avoidable — others aren’t.

But choosing the right mortgage upfront can prevent massive penalty costs later.

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If you want help reviewing your current mortgage terms or planning ahead before renewal, message us anytime.

We’ll help you avoid surprises and save money. 💬

💵 WHAT IS A CASH-BACK MORTGAGE?

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You’ve probably seen banks advertising cash back mortgages — and on the surface, they sound amazing.

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Who wouldn’t want extra money on closing day?

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But before jumping in, here’s what you really need to know 👇

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💰 How a cash-back mortgage works

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A cash-back mortgage gives you a lump-sum rebate (usually 1%–5% of your mortgage amount) paid to you on closing day.

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People often use the cash for:

✔️ renovations

✔️ furniture

✔️ fencing / landscaping

✔️ repaying a borrowed down payment

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BUT — very important —

❌ The cash-back cannot be used as your down payment.

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⚠️ The catch: Higher interest rates

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Cash-back mortgages usually come with a rate about 1.5% higher than standard mortgages.

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Over a 5-year term, the extra interest you pay often equals (or exceeds) the amount you received back.

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Example:

You get $15,000 cash back…

…but you may pay $15,000+ more in interest over the term.

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🏡 What if you move early?

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Most Canadians move every 3–4 years.

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If you break a cash-back mortgage early, expect:

✔️ the usual penalty (3 months’ interest or IRD)

PLUS

✔️ repayment of the unused portion of the cash-back

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This can easily add up to thousands of dollars.

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If allowed, the safest option is to port your mortgage to the new property to avoid double penalties.

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📌 When does a cash-back mortgage make sense?

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It can be helpful if:

• you urgently need renovation money

• you have no savings left after closing

• you need to repay a borrowed down payment

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BUT it’s not ideal if:

❌ you may move within 5 years

❌ you want the lowest possible interest rate

❌ you prefer flexibility

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💬 Final Thought

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Cash-back mortgages can work — but only when they fit your long-term plans.

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Before accepting one, talk to us. We’ll calculate the real cost, compare lender penalties, and make sure you’re not paying more than necessary.

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Message The Frontline Mortgage Group anytime — we’ll help you decide if this option is right for you. 💬