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How to pay off your mortgage faster

How to pay off your mortgage faster

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).

 

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