Amount required by the lender to the borrower in case of full or partial repayment of a mortgage loan before the maturity of the term of a closed loan, beyond the prepayment allowed. Such compensation may be required when transferring the loan to another lender (before the end of the term) or when the mortgaged building is sold.
It is indeed a rare occurrence when a buyer pays its condo, in one single payment. Most of them must obtain a mortgage loan to finance their purchase. What are the criteria and conditions to get a mortgage loan? Whom should you get it from? Banks, credit unions or other sources? What are the policies of the major financial institutions in this market? What are the limitations when planning the financing of your new property?