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.
With a little bit of thinking ahead, and a small bit of sacrifice, most people can manage to pay off their mortgage in a much shorter period of time by taking positive steps such as:
- 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 21.
- Mortgage lenders will also allow you to make extra payments on your mortgage balance payment date. Just about everyone finds themselves with money they were not expecting at some point or another. Maybe you received money for your birthday or a nice holiday bonus at work. Apply this money towards your mortgage and watch the results.
By applying these strategies consistently over time, you will save money, pay less interest and pay off your mortgage years earlier!
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