Pay Off Your Mortgage Faster

Mortgages in Canada are generally amortized at a 25 year term. However, you can pay your mortgage off faster if you choose to. Here’s how:

Make payments accelerated weekly or bi-weekly instead of monthly.
This saves interest over your term and can reduce your amortization to approximately 21 years from 25.

Increase your payments as your income increases.
If you get a 5% raise, contribute that much more to your mortgage payments.

Mortgage lenders will allow extra lump sum payments on your balance.
If you find yourself with an unexpected sum of money (inheritance, bonus), apply this directly to the principle of your mortgage.