Reduce your mortgage debt faster with these money-saving strategies:
Shorten your mortgage
Many homeowners aim to pay off their mortgages in 25 to 30 years. Reducing your amortization period by five or more years can make a huge difference in the amount of interest you pay.
Increase your payment frequency
With more frequent and accelerated payments, you may pay a little more each month, but you’ll pay your mortgage down faster, saving you interest costs over the long term.
Take advantage of your mortgage prepayment options
Pay down your mortgage faster and save thousands of dollars. Here’s how:
- Increase your mortgage payments (principal and interest) by 10% for a low-rate fixed closed mortgage or 20% for any other closed mortgage, once per calendar year without prepayment charges.
- Make lump sum payments1 in minimum amounts of $100 each year without prepayment charges, up to 10% for a low-rate fixed closed mortgage or 20% for any other closed mortgage.
1 Applicable provided the mortgage is in good standing and provided you have not obtained an official payout statement. Some other conditions apply.