Mortgage Blog

Canada's Mortgage Experts

7 Smart Strategies to Help Save Money on Your Mortgage

June 21, 2024 | Posted by: Shannon Mayhew

Hello, and welcome to our blog! If you're reading this, chances are you're looking for ways to make your mortgage more manageable. Whether you're a first-time homebuyer or a seasoned homeowner, finding ways to save on your mortgage can be a game-changer. As a mortgage professional, I've seen firsthand how minor adjustments can lead to significant savings. Here are seven strategies to help you keep more of your hard-earned money in your pocket.

1. Shop Around for the Best Rates

One of the most effective ways to save extra money on your mortgage is to shop around for the best interest rates. Different lenders offer different rates, and even a slight difference can save you thousands over the life of your loan. Our team can help you compare rates from various lenders to ensure you get the best deal possible.

2. Make Extra Payments

Making extra payments, even small ones, can significantly reduce the principal of your mortgage. This means you'll pay less interest over time. Consider putting any windfalls, like tax refunds or bonuses, towards your mortgage. Our calculators can show you just how much you could save by making extra payments.

3. Refinance Your Mortgage

Refinancing can be a powerful tool to lower your mortgage rate and monthly payments. With interest rates currently favorable, refinancing your mortgage might save you money. We can help you assess if refinancing is right for you and guide you through the process seamlessly.

4. Choose a Shorter Term

While longer terms offer lower monthly payments, shorter terms like a 15 or 20-year mortgage usually come with lower interest rates. This can save you a bundle of cash over the life of the loan. We can help you explore whether a shorter term is feasible for your budget and long-term goals.

5. Take Advantage of Prepayment Privileges

Many Canadian mortgages offer prepayment privileges, allowing you to pay down your mortgage faster without penalty. These privileges can include increasing your regular payment or making lump-sum payments. We'll help you understand your mortgage's prepayment options so you can maximize your savings.

6. Keep an Eye on Renewal Time

Don't just accept the lender's offer when your mortgage term is up for renewal. Use this opportunity to renegotiate your terms. We can assist you in reviewing your renewal offer and negotiating better terms that suit your current financial situation.

7. Consider a Variable Rate Mortgage

While fixed-rate mortgages offer stability, variable-rate mortgages can sometimes offer lower rates and more flexibility. If you're comfortable with the potential for rate fluctuations, this could be a way to save. We can provide a detailed comparison to help you decide if a variable rate is correct.

How We Can Help

We are dedicated to helping you navigate the mortgage landscape and find the best ways to save money. Whether it's finding the right lender, refinancing, or simply making informed decisions, we're here to support you every step of the way. Contact us today to discuss how we can help you achieve your mortgage savings goals.

Feel free to reach out with any questions or to schedule a consultation. Together, we can make your mortgage work harder for you!

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