At the time, they were told they would pay three months' interest – about $5,000, in their case – as a penalty to get out of the mortgage early.
Her sister lost her job and did not find another one. Unable to carry the mortgage on one salary, they sold the condo last month.
That's when they called the lender and learned the penalty to break the mortgage was now $20,000.
She felt misled because she had not been warned about the prospect of a much higher penalty.
"Any gains we may have made are now being absorbed into an interest debt that we did not agree to pay nor anticipate," she said.
Most lenders charge three months' interest or an interest rate differential (IRD), whichever is higher. With rates falling sharply, the IRD penalty will be higher.
"Early prepayment charges are outlined and disclosed in the documentation provided to clients when they take 
a new mortgage," said Rob McLeod, a spokesman for CIBC (a partner with Loblaw Companies in PC Financial).
"It is always advisable for mortgage holders to check with their financial institution about any penalties that may apply prior to taking a decision to sell their home.
"In this case, the client did not contact us prior to agreeing to sell the property."
The topic of mortgage penalties has attracted lots of reader mail.
Many borrowers talked of their frustration in trying to firm up the cost of prepayment when interest rates kept coming down.
That trend may have reversed itself this week. Most big banks have raised their five-year mortgage rates because of a spike in long-term bond yields.
Mary: "I have a five-year closed mortgage and was quoted a $2,000 penalty in April. A week later, rates had dropped and my penalty had doubled to $4,000.
Marc: "My wife and I had to put our house on the market. Our early payout penalty, already absurdly high at $14,000, has been raised to $24,000.
"Unless we get exactly what we're asking for, we'll end up owing the bank money when it's all done."
Randy: "My ex-wife and I have finally sold our home. Four months ago, the penalty was $4,000. Now it's $14,500. If rates go down again by our July closing, it could get up to $20,000."
Susan: "In 2007, I became ill and was confined to a wheelchair, unable to work. My husband, three kids and I had to live on one income for more than a year.
"We put our house up for sale, hoping it would pay our huge debt. We let our bank know and were never told we had to pay a penalty.
"Finally after a year, we have a buyer. We called the bank and found we have to pay $7,000. We never accounted for this penalty in our sale price."
Susan's story had a happier ending after she went to the media. TD Canada Trust agreed to cover her penalty – perhaps because she did call before selling and the bank missed the chance to mention it.
"We are thinking of other ways we can help her as well," said TD spokeswoman Kelly Hechler.
The lesson: Getting out early can cost you plenty, so check with the lender before doing anything. And if you face financial hardship, don't be afraid to say so. You may qualify for help.
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