Making strategic prepayments is one of the best ways to pay off your mortgage faster. Many homeowners do not realize how much interest builds up over a twenty-five-year amortization. Even small extra payments go directly toward your principal balance, not the interest.
First, consider an annual lump-sum payment within your allowed limits.
Second, switch to an accelerated bi-weekly payment schedule to make one extra monthly payment each year.
Third, round up your regular payments whenever your budget allows.
Small changes to your mortgage payment strategy can save you thousands of dollars in interest. Most Canadian mortgage products allow you to make extra payments without penalty. By lowering your principal balance directly, you reduce the total interest paid over the life of your loan.
Let me know if you would like to review your current prepayment options.
Small changes to your mortgage payment strategy can save you thousands of dollars in interest. Most Canadian mortgage products allow you to make extra payments without penalty. By lowering your principal balance directly, you reduce the total interest paid over the life of your loan.