7 Strategies to Pay Off Your Mortgage Faster
Want to own your home outright sooner? These strategies can save you years of payments and thousands in interest.
Strategy 1: Accelerated Payment Frequency
Instead of 12 monthly payments, make 26 bi-weekly payments (equal to 13 monthly payments).
Example:
- Monthly Payment: $3,000
- Accelerated Bi-Weekly: $1,500 × 26 = $39,000
- Years Saved: 3-4 years
- Interest Saved: ~$50,000
Strategy 2: Round Up Your Payments
Round your payment to next $100 or higher.
Strategy 3: Lump Sum Payments
Use windfalls (tax refunds, bonuses) for principal payments.
Strategy 4: Increase Payment When Rate Drops
When your rate decreases at renewal, maintain old payment amount.
Strategy 5: Shorter Amortization
Choose 20-year instead of 25-year amortization.
Strategy 6: Match Savings Rate
For every dollar you save, put same toward mortgage.
Strategy 7: Refinance to Shorter Term
When renewing, choose shorter term even if rate is slightly higher.
When NOT to Prioritize Mortgage Payoff
- Carrying high-interest debt (pay that first)
- No emergency fund (build 3-6 months first)
- Missing RRSP matching (take free money)
- Mortgage rate is very low (<3%)
Frequently Asked Questions
Is it better to invest or pay down mortgage?
Mathematically, invest if expected return exceeds mortgage rate. Emotionally, mortgage payoff provides guaranteed "return" and peace of mind.
Will prepayments reduce my monthly payment?
No, they reduce your amortization period. Same payment, fewer years.
Contact us for personalized payoff strategies.
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