Paying Off your Mortgage Faster – Useful Tips to Keep In Mind

19/08/2013 09:15

A mortgage is one of the greatest debts that you may ever have to pay for in your life. Not only is this a considerable amount of money; it also requires a lot of time to be paid off. While in most cases, Canadian mortgages have 25 years of amortization periods; this does not mean that you should just lock yourself in such a very long period of time. There are number of ways that you can follow to pay off your mortgage faster.

Make Adjustments on Payment Schedules

This is possibly the easiest way for you to pay off your home loan a lot faster. If you are financially stable, you should make the switch from regular monthly payments to bi-weekly payments. Instead of having to make 12 payments that will go towards your mortgage in one year, paying it off bi-weekly will result in 26 half payments.

Regularly Set Aside Budget for Lump Sum Payments

You do not have to think about lump sum payments in a very high regard. You can just set aside a hundred or a couple hundred dollars every month so that by the end of the year, you already have around $1,200 to $2,400 dollars in savings. You can then use this lump sum to make a payment that will go towards your mortgage.

Do Not Readily Sign the Mortgage Renewal Letter

If you receive a renewal letter in the mail for your mortgage, do not sign it just yet. Yes, it is definitely convenient and tempting, but it is highly unlikely that the mortgage interest rate of the renewal is the best one available for you. If your loan is already up for renewal, compare mortgages first to determine if your current lender is offering the best option.

If you want to know more tips on how to pay off your mortgage faster, head to