In other locations this has been deemed illegal and/or only allowed above a certain amount (think 10-15% of total remaining principal).
I do not agree with this being an ok practice (to charge).
Typically a mortgage does not allow over repayments. Why? It would get people in the nasty habit (from the perspective of the bank) to pay back a little more every month with the spare they've got.
Of course you can pay a fee to overpay.
Not all banks are the same, some have other incentives to pay off early.
Only credit unions and small regional banks still hold mortgages on their books. The overwhelming majority(90%+) of mortgages are agency - ie sold to the federal government.
I believe this to be illegal in the USA but would not be shocked if a rule change was slipped into some random unrelated bill.
I don't see a issue if credit cards charged 30d interest on balance, but if mine did that I would drop it instantly.
