Fast-Track Your Mortgage Payoff—Without the Pitfalls
Paying off your mortgage faster can save you thousands in interest and give you financial freedom sooner. Whether you’re planning to stay in your home long-term or considering selling, making informed choices can help you maximize your savings and avoid unexpected costs. Here are some strategies to help you get mortgage-free faster—plus a few risks to watch out for if you’re thinking about selling.
Smart Ways to Pay Down Your Mortgage Faster
- Make Biweekly Payments
Instead of 12 monthly payments, splitting your mortgage into biweekly payments means you make 26 half-payments per year—the equivalent of one extra full payment annually. Over time, this can shave years off your mortgage. - Round Up Your Payments
Rounding your payment up to the nearest hundred or adding just $50 to each payment might seem small, but it adds up. Every dollar over your minimum payment goes straight to reducing your principal. - Lump-Sum Prepayments
Many mortgages allow annual lump-sum payments without penalty. If you get a tax refund, bonus, or other windfall, consider putting it toward your mortgage to cut down on interest costs. - Increase Your Regular Payments
If your budget allows, increasing your regular payment amount (even by a small percentage) can make a big difference over time. Just be sure to check if your mortgage allows this without penalties. - Shorten Your Amortization Period
If you’re renewing your mortgage, consider a shorter amortization period. Higher payments may be a stretch, but they can help you become mortgage-free much sooner.
Selling? Talk to Us First!
While selling your home may seem like a quick way to get out of your mortgage, there are risks you should be aware of before making a decision:
- Prepayment Penalties – Depending on your mortgage type, selling before your term is up could trigger penalties that cost thousands.
- Portability Options – If you’re buying another home, you may be able to transfer your mortgage instead of breaking it, potentially avoiding penalties.
- Market Conditions – Selling in a slow market might not give you the return you expect, especially if home prices have dipped.
Before you list your home, speak with us to understand the financial impact and explore your options. We’re here to help you make the best decision for your financial future. For more information or to get started, visit our website or contact our offices at 416-238-5606 ext. 0. You can apply online or over the phone with a knowledgeable staff member. We’re here to help you every step of the way.
