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5 strategies to help you become mortgage free sooner
 January 10 2019     Posted by

5 strategies to help you become mortgage free sooner

We all know that paying off a mortgage as early as possible makes good financial sense. You’ll save significant interest costs and free up money for RRSPs and other investments, and changing lifestyle needs. Here are 5 strategies to help you become mortgage free sooner:

  1. 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.
  2. 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. 
  3. Increase your mortgage payment if your income increases. Pretend your income didn’t increase and maintain your usual lifestyle. 
  4. 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. 
  5. Stay informed. Don’t let your mortgage go on auto pilot. By staying in touch throughout your mortgage years,  when it comes time for renewal, you'll be up-to-date on rates and new mortgage options.

Because the right mortgage can build your wealth and save you thousands of dollars. Should you have any questions, or are looking to review your options give me a call at 778-858-9848 or email me at shannonmayhew@invis.ca


Shannon Mayhew, Mortgage Broker

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