Zoocasa
Real Estate Sold Prices
Calculator
Map
Property Trends & Insights
  • Blog Home
  • For Buyers
  • For Sellers
  • Real Estate News
  • Mortgage News in Canada
  • Free Guides (PDF)
  • Real Estate Infographics
  • Real Estate News
Zoocasa
Home Mortgage News

How to Pay off your Mortgage Faster

admin by admin
September 21, 2012
in Mortgage News
2 min read
Share
Tweet
Share
0 Shares

To paraphrase the Wealthy Barber, “A dollar saved is two dollars earned” – every dollar counts when upping your mortgage contributions, even when it may not seem like much at the time. The earlier you can start, the bigger the difference your hard-earned money makes in shortening the amortization period and saving on the interest that is owed.

If you haven’t done so already, take the opportunity to change your mortgage payment strategy with these options:

Make bi-weekly payments: If you are making monthly contributions, consider cutting that figure in half and making your payments every two weeks. You probably won’t notice the difference, but it does equal a couple of extra payments a year, which could save a few years off your mortgage.

Match your payments with your salary increases: Does your company offer automatic annual raises? If so, putting that towards your mortgage payments, or, figure an incremental increase of say, 1% yearly; it’s a painless way to put more money towards paying off your debt.

Round up your payments: Remember the bank that offered to put the difference of the amount spent on interact transactions rounded up to the nearest dollar be automatically deposited into your savings account? If you spent $4.75, then $0.25 would be automatically be saved and who would miss a quarter here or there? Well, apply that to your mortgage payment. If you are paying $1484 a month, rounding it up to $1500 can mean reducing your loan period by one year.

Lump sum payments: Many people don’t make a lump sum contribution although most mortgages allow for an annual contribution of as much as 15% of the initial principal amount. Consider putting your tax return towards a lump sum payment. Or, if you spend $5 on coffee everyday of the week – consider that if you save that instead, you’d have $1200 for a lump sum. It may not seem like that much, but it will whittle away at the interest you owe so that more of your payment is going towards the principle.

Mortgage prepayments: What’s your prepayment %? If you have an unexpected influx of cash, why not put that towards your monthly or bi-weekly payment? Most mortgage contracts include an allowable prepayment amount on all payment dates. Making a double payment here or there will certainly add up.

Often times the best investment is paying down your mortgage. So when negotiating a new mortgage or renewing one, you should be aware of all the ways you can make extra contributions without any penalty.

Previous Post

How Do I Use the Home Buyer’s Plan?

Next Post

How to Find your Perfect Home

admin

admin

Related Posts

Affordability

Four Tips for Buying a Home Following Bank of Canada’s Interest Rate Increase

June 1, 2022
Affordability

Reality Check: Interest Rates Are Rising, Securing A Mortgage Now is Best for Buyers

April 22, 2022
Bank of Canada

No Change to Bank of Canada Rate in October, Even as Inflation Burns Hot

October 27, 2021

Blog Search

No Result
View All Result

Recent Articles

Rent or Buy? Average Monthly Rental Prices vs. Monthly Mortgage Payments in the GTA

August 10, 2022

Should You Purchase a Home With an Open Floor Plan?

August 8, 2022

Condo Apartments Remain the Most Affordable and Second Most In-Demand Property Type in Toronto and GTA: TRREB

August 4, 2022

Your Home’s Screen Appeal: How to Stage Your Home for Photos and Videos

August 3, 2022

Rent or Buy? Average Monthly Rental Prices vs. Monthly Mortgage Payments in the GTA

August 10, 2022

Should You Purchase a Home With an Open Floor Plan?

August 8, 2022

Condo Apartments Remain the Most Affordable and Second Most In-Demand Property Type in Toronto and GTA: TRREB

August 4, 2022

Your Home’s Screen Appeal: How to Stage Your Home for Photos and Videos

August 3, 2022

The Most Expensive and Affordable Homes Sold in July in the GTA

July 29, 2022

Where Can You Buy a Home on a Single-Income in Canada in 2022? [REPORT]

July 28, 2022

Newsletter Sign-up

Join a community of 130,000+ subscribers. Don't miss important real estate news, market data, and buying and selling tips.

Social Media

Featured Listings (Updated Weekly)

The Most Expensive and Affordable Homes Sold in July in the GTA

July 29, 2022

The Most Viewed Homes in June 2022

July 22, 2022

Condos for Sale with Amenities in the GTA

July 11, 2022

Hidden Gems for Sale in Kitchener Under $500,000

July 4, 2022
first-time home buyer programs and rebates

About Zoocasa

Zoocasa.com is a full-service brokerage that offers advanced online search tools to empower Canadians with the data and expertise they need to make more successful real estate decisions.

Newsletter Sign-up

Join 130,000+ weekly subscribers. Don’t miss important real estate news, market data, and buying and selling tips: sign-up here.

Social Media

Zoocasa Tools

MLS Listings Canada
Search Sold Listings
iOS App
Android App
Find an Agent
Contact Us

  • Homes & Real Estate Properties
  • Terms of Use
  • Privacy Policy
  • Contact Us

© 2015 - 2022 Zoocasa Realty Inc., Brokerage

  • Blog Home
  • For Buyers
  • For Sellers
  • Real Estate News
  • Mortgage News in Canada
  • Free Guides (PDF)
  • Real Estate Infographics
  • Real Estate News
No Result
View All Result

© 2015 - 2022 Zoocasa Realty Inc., Brokerage