A few tips to speed up your mortgage payoff
- Increase your payment frequency to weekly or every 2 weeks.
- Make the equivalent of an extra mortgage payment per year by opting for accelerated weekly payments and shorten the amortization period. Simply divide your monthly payment by 4.
- Put the tax return you get for making an RRSP contribution toward reducing your mortgage balance.
- Continue making the same payment amount even if interest rates go down. You’ll pay down the principal faster.
- Use any member dividends you get from your caisse to make principal payments.
- Increase the principal portion of your payment to twice the amount.
- Round up your payments (e.g. $900 instead of $886.13).