Owning a home is a dream for many Canadians, but paying off the mortgage can be a long and daunting process. However, with the right strategies and mindset, you can accelerate the process and pay off your mortgage sooner than expected. In this article, we will share some tips and tricks for paying off your mortgage quickly.
- Increase your mortgage payments: One of the most effective ways to pay off your mortgage quickly is to increase your monthly mortgage payments. By increasing your payments, you reduce the amount of interest you pay over the life of the mortgage, which can save you tens of thousands of dollars in interest charges.
- Make lump sum payments: Another strategy to consider is making lump sum payments towards your mortgage. You can do this by using any extra money you receive, such as a work bonus or tax refund, to make a payment on your mortgage. This will help you reduce your mortgage principal and, in turn, lower your interest payments.
- Switch to bi-weekly payments: Instead of making monthly mortgage payments, consider switching to bi-weekly payments. By doing so, you will make an extra month’s worth of payments each year, which will help you pay off your mortgage more quickly.
- Refinance your mortgage: Refinancing your mortgage can also be a way to pay off your mortgage quickly. By refinancing, you may be able to get a lower interest rate, which will reduce your monthly mortgage payments. You can then use the extra money you save each month to make additional mortgage payments or pay off your mortgage more quickly.
- Consider a shorter amortization period: When you first take out a mortgage, you will be given an amortization period, which is the length of time it will take to pay off the mortgage in full. Consider shortening your amortization period to pay off your mortgage more quickly. While this will increase your monthly mortgage payments, it will also save you a significant amount of money in interest charges.
- Cut down on expenses: Another way to pay off your mortgage more quickly is to cut down on expenses. Consider reducing your monthly expenses, such as entertainment or dining out, and redirect that money towards your mortgage payments.
- Rent out a portion of your home: If you have extra space in your home, consider renting it out to help pay off your mortgage. This can be an effective way to bring in extra income and pay off your mortgage more quickly.
In conclusion, paying off your mortgage quickly is a goal that many Canadians share. By using these tips and strategies, you can accelerate the process and save thousands of dollars in interest charges. Remember to consult with a financial advisor or mortgage specialist before making any major decisions about your mortgage.