Mortgage Penalty Calculator
Calculate your break penalty: IRD vs 3-month interest. See if refinancing makes sense.
AED
%
%
Rate you could get today
%
Big banks use inflated posted rate for IRD
Your Penalty
AED 37,500
IRD (higher)
Net Saving
AED -29,418
Keep current mortgage
Penalty Comparison
3-Month Interest
500000 x 5.5% / 12 x 3
IRD Penalty
(posted 7% - current 4.5%) x balance x 36 months
Lender charges the higherAED 37,500
Break-Even Analysis
Monthly saving at new rateAED 224
Total saving over 36 monthsAED 8,082
Minus penalty-AED 37,500
Net savingAED -29,418
Big banks use an inflated "posted rate" to calculate IRD, making penalties significantly higher. Monoline lenders use your actual contract rate — often resulting in 50-80% lower penalties.
Calculations are estimates only and do not constitute financial advice. Actual rates, fees, and eligibility may vary by lender. Always consult a licensed mortgage professional.