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Let's see some 20/20 pay down examples!
20% monthly payment increase
Let's say you have the following mortgage:
- Mortgage: $200,000
- Rate: 4.69%
- 25 year amortization
- Monthly payment= $1,128.17
You can increase your monthly payments by 20%.
$1,128.17 x 20%= $225.63
This means your maximum monthly payment could be $1,353.80. ($1,128.17 + $225.63).
If you pay $1,353.80/month, your mortgage length changes from 25 years to 18.3 years!
20% original principal pay down
Let's keep the same mortgage details.
You can put up to $40,000 extra on your mortgage per year ($200,000 x 20% = $40,000) over the course of your mortgage without penalty. This would also change your mortgage length from 25 years to 17.17 years!
See our mortgage prepayment calculator to enter your own pay down scenarios.
If you'd like to take advantage of our 20/20 option, contact us today!
Types of Mortgages
- Available for personal use: principal residence, secondary residence, cabin, cottage, condo, non-revenue property
- Conventional and Canada Mortgage and Housing Corporation (CMHC) approved
- Interest compounded annually
- Term lengths 1 ,2, 3, 4, 5, 7 and 10 years
- See current rates
- All payment frequencies available
- Prepayment options
- You can prepay up to 20% of the original amount of the mortgage during each 12-month period from the anniversary date. This privilege is not cumulative from year to year and does not apply if you wish to prepay the mortgage in full, renegotiate the rate, or prepay more than 20%.
- If you wish to prepay in full, renegotiate, or prepay more than 20%, you'll pay the greater of:
- 90 days’ interest or the interest difference of the current posted rate of a similar mortgage type with an equal term.
- Innovation will allow 20% prepayment without penalty at the time of payout providing funds are not coming from another financial institution and the prepayment privilege has not been utilized since the anniversary date. (Mortgage schedules allow for the collection of the additional 20% penalty. The privilege is subject to change.)
- Payment increase
- During each term, you may increase the regular payment by a cumulative maximum increase of 20%
- If the regular payment has increased, you may decrease the payment to an amount not less than original payment set at the beginning of the term
- Property sold
- If the property is sold during the mortgage term, the penalty may be waived subject to you obtaining an Innovation mortgage of equal or greater value and selecting a minimum 1- year term.
- If the new mortgage is approved within 6 months from the date of payout of the previous mortgage, the penalty can be refunded upon disbursal of the new mortgage proceeds.
- Convertible and buy down options/consolidations:
- Pay the greater of 75% of:
- 90 days’ interest or
- the interest difference of the current posted rate of a similar mortgage type with an equal term.
- May select any Personal Closed Mortgage product.
- For consolidations, the above penalties shall apply or a blended rate as approved by our Retail Team.
- Pay the greater of 75% of:
- Early renewal
- 6-month option to early renew
- Current expiry must be within 6 months or less
- Applicable application fees
- Available for personal use: principal residence, secondary residence, cabin or cottage
- Conventional and CMHC approved
- Interest compounded annually
- Term length 5 years
- See current rates
- Blended repayment terms
- All payment frequencies available
- CMHC Blended 5-year term
- Non-blended repayment terms
- On demand, lump sum – due in 1 year or less
- Interest only option available only for a construction mortgage
- Prepayment options
- Prepay the whole or any part of the principal amount outstanding without penalty, unless payment is received directly or indirectly from another lender or financial institution. If that is the case, you shall pay a 90-day interest penalty.
- No penalty charged if the property is sold
- Convertible and buy down options/consolidations:
- Upon payment of a $100 conversion fee you may select any Closed Fixed Residential Mortgage product
- Applicable application fees
- Available for personal use: principal residence, secondary residence, cabin, cottage, condo, nonrevenue property
- Conventional and CMHC approved
- Interest compounded annually
- Term length 1 year
- See current rates
- Blended repayment terms
- All payment frequencies available
- Non-blended repayment terms
- On demand, lump sum – due in 1 year or less
- Interest only option not available
- Unlimited prepayment
- No penalty charged if the property is sold
- Convertible and buy down options/consolidations
- Upon payment of a $100 conversion fee, you may select any Personal Mortgage product
- Applicable application fees
- Available for personal use: principal residence, secondary residence, cabin, cottage, condo, nonrevenue property
- Conventional and CMHC approved
- Interest floating – semi-annual equivalent rate calculation
- Term length 5 year
- See current rates
- Blended repayment terms
- All payment frequencies available
- Non-blended repayment terms
- On demand, lump sum – due in 1 year or less
- Interest only option not available
- Unlimited prepayment
- No penalty charged if the property is sold
- Convertible and buy down options/consolidations
- Upon payment of a $100 conversion fee, you may select any Personal Mortgage product
- Applicable application fees
Mortgage Frequently Asked Questions
Checklist - When applying for a mortgage, we'll need some documents and information. Here’s our mortgage application checklist. Sending us your current mortgage statement will also be helpful.
Residential Mortgage Security - When you borrow money to buy a house, we require security in the form of real property.
Mortgage Default Insurance - As per Legislation, we can only lend up to 80% of the purchase price or value of your new home. If you have less than 20% for a down payment, you'll need mortgage default insurance (pdf).
A protection plan provides peace of mind for you and your loved ones. During a tough time, you can focus on your family. We'll focus on protecting you from financial loss.
With an insured mortgage, if you are unable to make your mortgage payments, CUMIS, our reputable insurance company, will make the payments for you. You can apply for a variety of insurance types for your mortgage: disability, life, loss of employment, or critical illness. So, for example, if you lost your job and had loss of employment insurance on your mortgage, CUMIS would make your mortgage payments until you found a job again (up to maximum time noted in your policy). You wouldn’t have to worry about losing your home during such a difficult time.
Need more help choosing your mortgage?
Try our mortgage selection tool!
Learn more about your mortgage options on the Financial Consumer Agency of Canada's (FCAC) website.
AIR = Annual Interest Rate
APR = Annual Percentage Rate
Annual Interest Rate = The total cost of credit expressed as an annual percentage, not including various non-interest charges.
Annual Percentage Rate = The total cost of credit expressed as an annual percentage, taking into account, both interest and various non-interest charges.
If there are no non-interest finance charges, the AIR and APR will be the same.
APR Assumptions:
a. $300,000 Mortgage
b. 25 Year Amortization
c. Applicable Term for Each
d. $400 Appraisal Fee
Applicable to residential mortgages only and subject to Innovation Federal Credit Union lending criteria for residential properties. Some conditions apply.
Interest rate compounded semi-annually not in advance. Interest rates are subject to change without notice.Applicable to residential mortgages only and subject to Credit Union lending criteria for residential properties. Some conditions apply.
Rates subject to change without notice.
Innovation Federal Credit Union will lend for properties located in Canada only.
Additional information for building mortgages could be required depending on the type of construction project you are undertaking.
Loans and mortgages can be approved in one business day if you have submitted all required paperwork OR, you will be able to book an appointment in one business day and be approved in two businesses days if you have submitted all required paperwork.
Mortgage Cash Back Terms & Conditions:
This offer applies to first time home buyers, next time home buyers and/or anyone who transfers their mortgage loan to Innovation Federal Credit Union (“Innovation”) from another financial institution (the “Applicants”). Mortgage loans must have a principal amount of $100,000 or more, must be an Innovation Federal Credit Union (“Innovation”) Fixed-Rate Closed mortgage loan at Innovation’s posted 5-year Closed Fixed (Special) mortgage interest rate, and must have a term of 5 years with an amortization of 25 years or less. The offer applies to new consumer residential mortgage loans only. Mortgages for an acreage or home quarter which qualifies for residential mortgage pricing are not eligible for Mortgage Cash Back. The mortgage must have a purchase price or as-improved property value less than or equal to $1,000,000. Mortgage renewals, re-advances or refinances are not eligible for the Mortgage Cash Back offer.
Applicants must have an Innovation No-Fee Bank Account and Member Rewards Account. Pre-authorized mortgage payments must come from an Innovation bank account. Mortgage application must be submitted to Innovation by December 31, 2024, and mortgage must be funded within 120 days of application.
Qualifying Applicants will receive cash back based on their mortgage loan amount. Cash back amounts are tiered as follows:
o $1,000 cash back on a mortgage loan of $100,000 – $299,999
o $2,000 cash back on a mortgage loan of $300,000, – $499,999
o $2,500 cash back on a mortgage loan of $500,000 – $749,000
o $3,000 cash back on a mortgage loan of $750,000 - $1,000,000.
Cash back amount will be deposited into the Applicant’s Innovation Member Rewards Account within 30 business days after mortgage funding. In the case of joint mortgages, the cash back amount will be divided equally amongst all mortgage holders. Investment income earned on Member Rewards Account balances may be taxable. If the offer ends before the 30 business days after funding, Innovation will still pay the cash back amount to the Applicants, provided the above terms and conditions are met.
Offer is subject to meeting Innovation’s credit approval criteria. Offer may end or change at any time without notice. From time to time, and without notice, Innovation may change, supplement, or amend these terms and conditions. Offer expires December 31, 2024, but may end at any time without notice.
Offer is non-transferable and is not valid in conjunction with any other Offer unless otherwise stated. Limit of one Offer per Qualifying Account Holder, including for joint Account Holders. The recipient(s) of the Offer is solely responsible for any tax consequences associated with their receipt thereof.