Pay Off Your Mortgage Faster
Mortgages in Canada are generally amortized between 25 and 35 year terms. While this seems a long time, it does not have to take anyone that long to pay off their mortgage if they choose to do so in a shorter period of time.
Smart Moves for Swift Mortgage Payoff
Achieving an expedited mortgage payoff is well within reach for most individuals with a touch of foresight and a modest commitment to sacrifice. By strategically taking positive steps, homeowners can significantly reduce the timeline for settling their mortgage. This process involves deliberate actions that pave the way for financial freedom and a quicker transition to mortgage-free living. Let's explore key strategies that empower individuals to proactively manage and accelerate their mortgage repayment journey.
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Making mortgage payments each week, or even every other week. Both options lower your interest paid over the term of your mortgage and can result in the equivalent of an extra month’s mortgage payment each year. Paying your mortgage in this way can take your mortgage from 25 years down to approximately 21.​
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When your income increases, increase the amount of your mortgage payments. Let’s say you get a 5% raise each year at work. If you put that extra 5% of your income into your mortgage, your mortgage balance will drop much faster without feeling like you are changing your spending habits.
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Mortgage lenders will also allow you to make extra payments on your mortgage balance each year. Just about everyone finds themselves with money they were not expecting at some point or another. Maybe you inherited some money from a distant relative or you received a nice holiday bonus at work. Apply this money to your mortgage as a lump-sum payment and watch the results.
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By applying these strategies consistently over time, you will save money, pay less interest and pay off your mortgage years faster!