You can pay off your mortgage faster by increasing your monthly mortgage payments to pay more towards your principal, making additional payments on your mortgage, reviewing with your broker to find a better rate, or refinancing to shorten the amortization period!
Reduce your total amortization period. You may move toward an accelerated bi-weekly payment schedule. You’ll pay increased monthly payments, which may significantly reduce the total amortization period of your mortgage by multiple years.
Another strategy is to exercise a pre-payment privilege. This allows you to increase your original payment amount without penalty, typically from 10% to 20%. Your mortgage advisor can help you assess your ability to put available money, such as a raise, bonus, or inheritance, towards your mortgage to reduce your balance. They can also advise you on how to make extra payments, significantly reducing your mortgage term.
When your mortgage term is up for renewal. This is an excellent time to consider your options. Adjusting your mortgage rate could lead to significant savings if interest rates are falling. This is a wonderful time to discuss existing opportunities, including refinancing to a shorter amortization period. If you can manage higher monthly payments, you’ll reduce the overall interest paid on your mortgage.
Note: Contact us to discuss any questions about your mortgage and see which options are best suited to your circumstances.
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