Mortgage Pre-Payment Privileges allow you to pay down the principle of your mortgage penalty free! Every lender is different. Some lenders have “cheaper” rate options, but only allow 5-10% privilege annually. Standard pre-payment privileges range from 15-30% annually. This may not sound like an important feature if your goal is to simply pay the minimum monthly payments. But higher pre-payment privileges give you more flexibility if you ever need to break your mortgage term early (Selling, Refinancing, Renewing at lower rates etc.).