HOW TO PAY OFF YOUR MORTGAGE FASTER 10 SMART STRATEGIES FOR HOMEOWNERS

Paying off your mortgage early can save you tens of thousands of dollars in interest and give you the peace of mind that comes with being debt-free. Whether you’re just starting out or halfway through your term, these tips can help you pay off your mortgage faster in Canada (or anywhere else).

1. Make Biweekly Payments Instead of Monthly

Instead of making 12 monthly payments, split your monthly mortgage in half and pay it every two weeks. This adds up to one full extra payment per year, significantly reducing your interest and amortization period.

2. Round Up Your Payments

If your mortgage payment is $1,236, round it up to $1,300 or even $1,500. Small increases add up over time and go directly toward your principal.

3. Use Lump-Sum Payments

Many Canadian mortgage lenders allow you to make annual lump-sum payments of 10–20% of the original principal without penalties.

Use:

• Tax returns

• Work bonuses

• Inheritance or gifts

4. Increase Your Regular Payments

Ask your lender if you can increase your regular payment amount without penalty. Even a 10% increase can save thousands over the life of your loan.

5. Refinance to a Lower Interest Rate

If rates have dropped since you took out your mortgage, refinancing to a lower rate can save thousands in interest. Just be sure to compare the savings to any penalties or fees for breaking your mortgage early.

6. Avoid Taking Mortgage Payment Holidays

Some lenders offer payment deferrals, but this adds interest and increases your total repayment time. Avoid this unless you’re facing financial hardship.

7. Shorten Your Amortization Period

When you renew your mortgage, opt for a shorter amortization if you can afford higher payments. You’ll be mortgage-free years earlier.

8. Use a Mortgage Payoff Calculator

Use online tools to model how increasing your payments or making lump-sum contributions impacts your payoff date and interest savings.

9. Eliminate High-Interest Debt First

Before paying extra on your mortgage, pay off high-interest credit card debt. Once cleared, redirect those payments to your mortgage principal.

10. Reinvest Once the Mortgage Is Paid Off

Once you’re mortgage-free, put that same amount into:

• Retirement savings (RRSPs or TFSAs)

• Investment property

• Your child’s education fund

Paying off your mortgage faster isn’t just about math—it’s about financial freedom. Every extra payment you make is a step toward peace of mind, flexibility, and long-term security. With the right strategy and discipline, you can shave years off your mortgage and save a fortune in interest.