In Canada, mortgages are typically amortized over 25 to 35 years. While this may seem lengthy, you can choose to pay off your mortgage much sooner using proven strategies!
Pay Off Your Mortgage Faster in Barrie, ON
With some foresight and a bit of sacrifice, most people can significantly shorten their mortgage term by taking positive steps such as:
Making mortgage payments weekly or bi-weekly: These options reduce the interest paid over the term of your mortgage and can result in the equivalent of an extra month’s payment each year. This approach can shorten a 25-year mortgage to approximately 21 years.
Increasing your mortgage payments with income raises: For example, if you receive a 5% raise each year, applying that extra 5% to your mortgage will reduce your balance faster without drastically changing your spending habits.
Making extra payments: Mortgage lenders often allow additional payments on your mortgage balance each year. Unexpected windfalls, such as an inheritance or a holiday bonus, can be applied as lump-sum payments to significantly reduce your mortgage balance.
By consistently applying these strategies, you will save money, pay less interest, and pay off your mortgage years sooner!