The Penalty Timeline helps you understand how a client's estimated mortgage penalty is expected to change throughout the remaining term of their mortgage.

Rather than only showing today's estimated penalty, Ownwell projects how the penalty may change over time using today's verified rates. This gives you greater visibility into when acting sooner could preserve savings and when waiting may be more beneficial.

When an estimated penalty is expected to increase or decrease within the next six months, Ownwell may surface planning signals to help brokers identify clients who may benefit from acting sooner or waiting. These signals are only displayed when Ownwell is using Verified Rates, where there is high confidence in the penalty calculation.

When a client has a Savings Opportunity, and their estimated mortgage penalty is expected to increase within the next six months, you'll see an Act Fast signal in the Signals column on the Opportunities page.

These signals help you quickly identify which clients may benefit from a conversation before their opportunity window begins to close.

Hover over the signal to view additional details, including the estimated increase and when it's expected to occur.

When a client's estimated mortgage penalty is expected to decrease within the next six months, brokers may see the Penalty drops in 6 months signal.

The Penalty drops in 6 months signal indicates that waiting until after the projected decrease may create a better savings opportunity based on today's verified rates.

Unlike the Act Fast signal, the Penalty drops in 6 months signal is only shown to brokers and is never displayed to homeowners.
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If a client's estimated penalty is expected to increase within the next six months, they'll also see an alert in their Homeownership Report.

The alert explains that, based on today's verified rates, the cost of breaking their mortgage is expected to increase after a specific date. This helps create urgency and encourages clients to reach out before the estimated penalty changes.

Clients do not see the full Penalty Timeline, graph, or penalty calculations. They only see the alert when applicable. Recommendations to wait for a future penalty decrease are only shown to brokers.

Within Client Details, you'll find the full Penalty Timeline.

Brokers may also see planning signals indicating whether the estimated mortgage penalty is expected to increase or decrease within the next six months, helping determine whether it may be beneficial to act now or wait.

The Penalty Timeline combines your client's mortgage information with today's verified rates to estimate how the mortgage penalty may change throughout the remaining mortgage term.

It is designed as a planning tool to help you understand how timing may affect the cost of breaking a mortgage.

Ownwell calculates mortgage penalties using one of three rate confidence levels. The confidence level determines how the penalty is estimated and whether planning signals are displayed.

Verified Rates are manually tracked by Ownwell and use lender-specific penalty calculation rules where available.

Because these estimates have the highest confidence, mortgages using Verified Rates may display planning signals such as Act Fast and Penalty drops in 6 months.

Estimated Rates use lender-specific rate information from trusted third-party data sources when Ownwell recognizes the lender but doesn't have complete lender-specific penalty calculation rules.

Penalty Timelines are still available, but planning signals aren't displayed.

Average Rates are used when lender-specific rate information isn't available. These estimates rely on average rates for the lender type together with standard industry assumptions.

Penalty Timelines are still available, but planning signals aren't displayed.

If Ownwell is using Verified Rates and estimates that the mortgage penalty will increase within the next six months, you'll see an alert at the top of the timeline.

For example:

This alert helps identify clients who may benefit from reviewing their mortgage sooner rather than later.

The graph shows how the estimated mortgage penalty changes throughout the remaining mortgage term.

Three values are displayed:

Penalty (Blue)

The estimated mortgage penalty at each point throughout the remaining term.

Interest Rate Differential (IRD) (Grey Dotted Line)

The estimated IRD calculation over time.

Three Months' Interest (Yellow Line)

The estimated three months' interest calculation.

The blue Penalty line follows whichever calculation applies at that point in the mortgage term.

Hover over any point on the graph to view:

This makes it easy to understand how the estimated penalty changes over time.

The Penalty Today section summarizes the client's current estimated mortgage penalty.

Depending on the mortgage, you'll see:

It will highlight whether the IRD penalty or three months' interest applies to the homeowner's mortgage. This provides additional context around how today's estimate was calculated.

The Transition Points table highlights the key dates where the estimated penalty changes.

For each transition point, you'll see:

These milestones help explain why the estimated penalty changes at different points throughout the remaining mortgage term.

Many lenders calculate Interest Rate Differential (IRD) penalties using different comparison rates depending on how much time remains on the mortgage term.

As the remaining term becomes shorter, the lender may begin using a different posted rate to calculate the penalty.

This can result in significant increases or decreases in the estimated penalty, even though only a short amount of time has passed.

The Penalty Timeline highlights these transition points so you can better understand when these changes are expected to occur.

The Penalty Timeline helps you move beyond identifying savings opportunities by giving you additional context around timing.

You can use it to:

Prioritize outreach

Clients with an Act Fast signal may benefit from speaking with you sooner, as their estimated penalty is expected to increase within the next six months.

Help clients plan ahead

Clients with a Penalty drops in 6 months signal may benefit from waiting until after the projected decrease before reviewing their options. In some cases, the Penalty Timeline may show that waiting could significantly reduce the estimated cost of breaking their mortgage.

Support conversations with confidence

The timeline gives you additional context around penalty changes, allowing you to explain why timing may affect the overall savings opportunity.

The Penalty Timeline provides estimates based on today's verified rates.

It does not forecast future interest rates.

Instead, it estimates how the mortgage penalty would change if today's verified rates remained unchanged throughout the remaining mortgage term.

Because lender rates may change over time, planning signals are only displayed when Ownwell is using Verified Rates, where there is high confidence in the estimated penalty calculation.

Always confirm the exact mortgage penalty with the lender before your client proceeds with refinancing or another mortgage application.

No. The Penalty Timeline is available for eligible fixed-rate mortgages where Ownwell supports the lender's penalty calculations and has verified the required lender rates.

Planning signals are only displayed for mortgages using Verified Rates.

The alert is only displayed when Ownwell is using Verified Rates and estimates that the mortgage penalty will increase within the next six months.

If no increase is expected during that period, or if the mortgage is using Estimated Rates or Average Rates, the alert won't appear.

No. Homeowners only see the Act Before alert in their Homeownership Report when applicable. They don't see the Penalty drops in 6 months signal, which is available only to brokers.

The full Penalty Timeline, graph, calculations, and transition points are available only within Client Details.

No. The timeline uses today's verified rates to estimate how the mortgage penalty would change if those rates remained unchanged.

It should be used as a planning tool rather than a forecast of future rates.

Many lenders use different posted rates when calculating Interest Rate Differential penalties as the remaining mortgage term changes.

When the lender switches to a different comparison rate, the estimated penalty may change significantly.

The Transition Points table highlights when these changes are expected to occur.

The Rates Verified badge indicates that Ownwell has verified the lender's rates used to calculate the estimated mortgage penalty. Mortgages using Verified Rates have the highest confidence and may display planning signals such as Act Fast or Penalty drops in 6 months.