Roll-Over Mortgage

Pay no Mortgage Penalty when you sell your home

If you sell your home and pay off the mortgage before its end of term, you may be required to pay a penalty. But if you opt for a roll-over mortgage, you can be exempted from paying some or even the entire penalty.

The roll-over mortgage allows you to transfer the terms and conditions of your existing mortgage (balance, interest rate and term expiry date) to a new mortgage loan contracted with National Bank¹. You may be able to recoup all or part of the penalty when your new mortgage is disbursed.

Also, if the new loan amount is greater than the balance on your existing mortgage, you can take advantage of the Multi-Choice option, which lets you divide your new mortgage into two portions.

• First portion: balance of existing mortgage (same interest rate, same expiry date)
• Second portion: remainder (at the posted interest rate for the term of your choice)

Conditions

• The new mortgage must be obtained within 90 days of closing the existing mortgage.
• If the new loan amount is less than the balance owing on your existing mortgage, and if the rate is lower and the term shorter, you may be required to pay a penalty.

Example (as at January 26, 2005)

Scenario 1: new mortgage equal to the balance of the existing mortgage.

Scenario 2: new mortgage smaller than the balance on the existing mortgage.

This example is based on an initial conventional mortgage of $100,000 at a rate of 6.50% for a 5-year term amortized over 300 months.

¹ You can avoid paying the penalty if you refer the buyer of your home to us and he or she takes out a mortgage with National Bank.