For many homeowners, the one of the biggest questions is "How can I pay off my mortgage as fast as possible?"
It's natural to look forward to the day when you have made your very last mortgage payment and own your home outright.
Owning your home provides you with greater financial freedom, flexibility and the ability to focus on other financial goals like retirement or saving for your child's education.
It doesn't even have to be that hard - you'll be amazed how small changes in your mortgage terms and payments can make a big difference.
Here are 5 tips to help you become mortgage-free faster.
Make your regular payments more frequent:
Save interest and become mortgage-free sooner by choosing bi-weekly or weekly payments rather than monthly payments. The result is an extra monthly payment every year, without you even noticing it!
Increase your payment amount when you can: Whenever your household income rises (e.g. salary increase, new job, etc.), consider increasing your mortgage payment at the same time. If you've had a mortgage for a while, you're likely used to the routine of making regular payments. Now might be a good time to consider an increase to your mortgage payment.
To help you pay off your mortgage sooner, you may be able to double your current mortgage payment of principal and interest on any regular payment date. Please call us to learn more about this option.
Make a lump sum payment:
Take advantage of the prepayment options on your mortgage to make an annual lump sum payment against your mortgage. Depending on the options you select for your mortgage, you can choose to repay up to 10%, 15% or 20% of the original principal amount of your mortgage at any time during each year of the term. Remember, even small amounts can make a big difference in the long run.
Restructure your mortgage: Consider mortgage options that can provide savings and flexibility.
Thanks to ScotiaBank for these 5 great tips.