Synergy Credit Union - Mortgage Prepayment Options

Make the Most of Your Mortgage

Not sure what your mortgage allows when it comes to extra payments or paying it off faster? You’re not alone—those legal documents can be a lot to take in.

Mortgage Prepayment Options at a Glance

Mortgage	Downpayment	Rate	Prepayment option (amount you can pay down on your mortgage per year)	Prepayment penalty (if prepayment is greater than specified) see below
Simplicity mortgage	Insured (5-19%)	Fixed	20% per year of the total mortgage amount	A or B (whichever is the greatest)
	Conventional (20%)	Fixed
	Conventional (20%)	Variable		A
Super Mortgage	Insured (5-19%)	Fixed	20% per year of the total mortgage amount	A or B (whichever is the greatest)
	Conventional (20%)	Fixed
	Conventional (20%)	Variable	Can paydown the mortgage as quickly as possible	None
Open Mortgage	Conventional (20%)	Fixed or variable	Can paydown the mortgage as quickly as possible	None

Maximize Your Mortgage Payoff: Simple Strategies

Choose the Right Payment Frequency
Customize your mortgage payments to fit your lifestyle—weekly, biweekly, semi-monthly, or monthly.
Want to pay off your mortgage faster? Choose accelerated weekly payments (see example below). This option gives you 52 payments a year instead of 48, which is like making one extra monthly payment annually—helping you reduce interest and shorten your mortgage term.
Make Extra Contributions
You can prepay up to 20% of your original mortgage amount each year—and some mortgages offer even more flexibility (see chart above).
Just let us know when you'd like to make an extra payment, and we’ll apply it directly to your principal balance. This helps you save on interest and shorten your mortgage term—getting you closer to financial freedom, faster.

Stay Informed About Penalties

While making extra payments is a great strategy, it’s important to understand potential penalties if you exceed your prepayment limit:

Penalty A: Three-Month Interest

If you go over your annual prepayment limit, you may be charged three months’ worth of interest.
Example: For a $100,000 mortgage, this could be around $1,250.

Penalty B: Interest Rate Differential (IRD)

This applies if your current mortgage rate is higher than the posted rate for the remaining term.

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