Most of us only think about our mortgages twice: once when we purchase and again at renewal. Unfortunately this often means we lack strategy throughout the life of our mortgage which can cost us money and prevent us from paying down the mortgage as fast as possible.

Here are some of our favourite ways to pay down your mortgage faster!

Increase your Mortgage Payment

This may seem obvious, but increasing your mortgage payment is a great way to pay down your mortgage faster. Most lenders have a cap on the payment increases permitted each year, so it is best to find out what the policy is for your mortgage. Even if it is only twenty or thirty dollars a month, any increase amounts to savings in interest payments throughout the life of the mortgage.

Change your Payment Frequency

Changing your payments to accelerated weekly or biweekly is another great option if you are hoping to pay off your mortgage more quickly! By doing this, a larger portion of your payment goes towards the principle instead of just the interest payments

Making Lump Sum Payments

Making lump sum payments is another popular way to accelerate your mortgage paydown. However, did you know that splitting your lump sum into two payments is even faster than one, large payment?

Since the interest rate is calculated every six months, making two smaller payments ensures you are paying less interest costs over the course of the year.

What About Rate?

Mortgage rates are a huge focus at renewal and when looking to buy a home, but few keep an eye on the rates after these dates have passed. Rather than the set and forget mentality, It is a great idea to know your current mortgage rate as well as the current rate environment.

Is your current interest rate higher or lower than the rates you see advertised? Sometimes it is worth breaking your mortgage to lock in at a lower rate. Having a mortgage agent to help you through this process is invaluable.

An Advocate

Mortgage agents do not just offer the expertise required to help you obtain a mortgage product which suits your needs, they are also a trusted advocate throughout the life of your mortgage. They are available for questions not only at maturity but also throughout the life of the mortgage.

Since mortgage agents act on behalf of you, they are interested in your financial health. Having an advocate is an important piece of ensuring you are saving money and paying down your mortgage as fast as possible!

Take a few minutes to look at your mortgage and see if you can implement these strategies. It will be invaluable to you as your mortgage matures.