As you all know that paying off your mortgage as early as possible makes good financial sense. This will be beneficial to you, as you will save a significant amount of interest charges and free up money for RRSPs or other investments, and changing lifestyle needs.
Here are 5 strategies that will help you become mortgage free sooner:
- Add a bit to your monthly payment. Most of us can find an extra $50 per month by cutting out a restaurant meal. Add that money to your mortgage and you’re saving big on interest down the road.
- Make a yearly pre-payment. Paying an extra one or two thousand on your mortgage once per year on the anniversary date of the mortgage could yield significant savings over the life of the loan. Take advantage of a tax refund or bonus from work. Lump-sum mortgage prepayments have a much greater impact on the total amount of interest you’ll pay if they are made early in the mortgage.
- Increase your mortgage payment if your income increases. Pretend your income did not increase and maintain your usual lifestyle.
- Choose accelerated bi-weekly payments. Instead of paying your mortgage on a monthly basis 12 times per year, pay your mortgage every two weeks for a total of 26 payments, effectively giving you one more mortgage payment each year.
- Stay informed. Do not let your mortgage go on auto pilot. Let us stay in touch with you throughout your mortgage years. We can help you save money at renewal, and will keep you up-to-date on rates and new mortgage options. You can save thousands just by understanding what your options are and by taking advantage of opportunities.
Let us help you build a plan to become mortgage free sooner! Contact the MiMortgage.ca Team at 1 866 452-1100 to speak to an agent or to book your free no-obligation mortgage review.