What are the prepayment options available with Sagen-insured mortgages?
Sagen defines a mortgage prepayment as any additional payments made beyond the scheduled amount in the original mortgage agreement, including both lump-sum and accelerated payments .
This empowers borrowers to reduce their mortgage principal faster than initially planned.
Key Points
You can pay off your mortgage faster with both one-time payments and increased regular payments.
These extra payments help you pay down your mortgage principal without extra interest or penalties.
Using prepayment options helps you shorten the time it takes to fully pay off your mortgage.
Technical Research Verification
Our systems synchronized 4 data points and regulatory frameworks to verify this technical brief.
Related Questions
How does the stress test differ for fixed vs. variable in 2026?
Both are stress-tested at the higher of the benchmark (5.25%) or the contract rate + 2%.
Why are 3-year fixed rates dominating the 2026 market?
Borrowers are hesitant to lock in for 5 years at current levels, but find 1-2 year rates too expensive.
Fixed vs. Variable Comparison Table
Fixed locks a 5-year rate with IRD penalty risk; variable floats with prime and typically caps break fees at 3 months interest.
What is the 'IRD' penalty risk for 5-year fixed borrowers?
The Interest Rate Differential (IRD) can cost tens of thousands if you break a fixed mortgage when market rates have dropped.