REDEMPTION STATEMENT
What is a redemption statement?
This is the sum of money transferred to a lender if you decide to pay back your mortgage early, consisting of the outstanding lump sum balance in addition to a penalty fee charged to cover the interest the lender will subsequently lose out on.
Most mortgage products include within their terms a Early Repayment Charge (ERC) that is payable if you repay your mortgage within the early repayment charge period. The period of time normally ties into an incentive period such as a fixed rate of 2, 3 or 5 years so if you repay your mortgage in part or in full during this period, then the mortgage lender will charge you an additional early repayment charge.
This is the sum of money transferred to a lender if you decide to pay back your mortgage early, consisting of the outstanding lump sum balance in addition to a penalty fee charged to cover the interest the lender will subsequently lose out on.
Most mortgage products include within their terms a Early Repayment Charge (ERC) that is payable if you repay your mortgage within the early repayment charge period. The period of time normally ties into an incentive period such as a fixed rate of 2, 3 or 5 years so if you repay your mortgage in part or in full during this period, then the mortgage lender will charge you an additional early repayment charge.