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Pay Your Mortgage Down Faster

 

For starters, set your payments to bi weekly accelerated. This will shave off about 3 years off of your total amortization. Also set your payments as high as you can without feeling stressed. You will be only charged your actual interest rate and the difference goes straight to paying down your principal.

The faster you reduce the outstanding balance on your mortgage, the more you will save in interest charges. This is particularly important as mortgage interest is not tax-deductible in Canada (unless the mortgage is for a business purpose). Mortgage payments are made with money that you have already paid tax on – after tax dollars.

You can also make balloon payments at one time during a year without penalty. Doubling up your payments is also an option.