Is there anyway a bank will waive part or all of the breakage fee to stay with them but go into a lower rate mortgage?
I find this interest rate differential absurd - mine is outrageous and I am now stuck!
Any thoughts
The fees for breaking the mortgage contract are set out in the contract itself (typically it's 3-months interest or the "interest rate differential", whichever is higher). You can just call the bank and they'll be able to tell you how much the fee would be to break the mortgage.
Assuming you have enough equity, you could break the mortgage and refinance elsewhere, and roll the penalty into the new mortgage balance.
A better option may be to call the bank and ask about a "blend and extend". This lets you renew early and take advantage of the lower rates - your new rate will be calculated based on how much time is left in your term, the rate you agreed to originally, and the rate as it stands today. There shouldn't be any penalty for a blend-and-extend.
For example, if you are 2.5 years into a 5-year term at 6% but rates for 5-year terms have dropped to 4%, you could blend-and-extend into a new 5-year term, with a rate of 5%. Essentially, you're paying 6% for the remaining 2.5 years in your first term, and 4% for the latter 2.5 years.