top of page

Penalty Protector

Business Man

A TFC exclusive. We offer a monitoring service that allows our clients to monitor penalties at the major Canadian Banks on a high-level for their fixed rate mortgages.

Talk to us today on how we can help!

Penalty Protector Pro.png

An Industry Exclusive
The Ability to Harness Information

Introducing TFC Penalty Protector Pro:
Your Guardian in the Mortgage Maze.


Navigating through the complexities of mortgage penalties in Canada can often feel like an intricate puzzle. That's where TFC Penalty Protector Pro steps in. Designed with precision and care by The Financial Collective, this innovative program stands as your vigilant protector against the unpredictable world of fixed mortgage penalties.


Our expert team continuously monitors the landscape, ensuring you're not only informed but also empowered to make decisions that safeguard your financial health. With Penalty Protector Pro, you gain unparalleled insights and alerts on potential penalties, giving you the clarity and confidence to manage your mortgage on your terms.


Embrace the future of mortgage management, where unexpected fees become a thing of the past, and peace of mind is a guarantee. Welcome to TFC Penalty Protector Pro – your key to navigating mortgage penalties with ease and assurance.


Current State of the Big Banks


TD Canada Trust

No IRD's


RBC Royal Bank

Possible IRD's



No IRD's



No IRD's


BMO Bank of Montreal

No IRD's


National Bank

No IRD's

Information and Definitions


  • Why is this important?

    • Knowing your options and penalty structure is critical to your Mortgage Plan! 

  • Interest Rate Differential (IRD): 

    • The Interest Rate Differential (IRD) on a Canadian fixed-rate mortgage is a type of penalty that may be charged to a borrower who decides to pay off or refinance their mortgage before the end of its term. The IRD is calculated when the interest rates have dropped since the time the mortgage was taken out, and the lender stands to lose interest income if the mortgage is paid off early and the funds are then lent out at a lower current rate.

      • The IRD is essentially the difference between:

        • The interest rate on your existing mortgage: This is the rate you agreed to pay when you signed your mortgage contract.

        • The current interest rate that the lender can charge today for a mortgage term similar to your remaining term: This is usually based on the rate the lender could earn if they were to re-lend the funds at current market rates for the remaining duration of your original term.

    • The formula for calculating the IRD can vary between lenders but generally involves the following steps:

      • Determine the remaining balance on your mortgage.

      • Calculate the difference between your mortgage's interest rate and the current market rate for a term similar to your remaining term.

      • Multiply this rate difference by the remaining balance.

      • Multiply the result by the remaining term of your mortgage (in years or months, depending on how the lender calculates it).

bottom of page