What Happens to Your Taxes When You Sell Before Your Mortgage Term Ends
Paying off your mortgage early in Canada can trigger prepayment penalties ranging from three months’ interest to the interest rate differential, and understanding whether you can deduct these costs depends entirely on how you use your property. Property Saviour has found that many homeowners discover these penalties only when they’re ready to sell, often facing bills of $5,000 to $30,000 or more.
The Canada Revenue Agency treats mortgage penalties differently based on whether you’re selling your principal residence…

