As your mortgage broker Toronto, we understand that buying a home is a dream for most Canadians. However, taking on a massive debt like that can have some unintended consequences. You might not be able to retire when you want to or take the dream vacation you been thinking about.
That’s why along with the best mortgage rates on your loan, we’re supplying these tips on paying down your mortgage faster.
- Buying a place that you can afford is number one on our list for good reason. It’s important to keep in mind here that what the bank tells you you’re approved for and what you can afford might be two different things. For example, that preapproval number doesn’t take into account utilities, repairs and property taxes. Plus you’ll need to add on other living expenses.
- Another way to pay down your loan faster is to pay more than the minimum. Whatever you pay over and above goes directly to the principal. Making a lump sum payment will help you to get to the finish line quicker. Every year you can use a tax refund or an annual bonus to knock off what you owe.
- Speeding up your payments also helps you to get to the finish line quicker. For example, a strategy of paying $500 every two weeks is better than just paying $1000 a month. Making 26 half payments yearly means that you’re actually adding the equivalent of one full monthly payment on top.
Finally, here’s one more tip from your mortgage broker Toronto on how to pay off your mortgage quickly. At the end of the term when you renew your mortgage, you might get a lower interest rate. However, keeping your payments the same is the best move.
