4 Proven Ways to Pay Off Your Mortgage Faster

Do you have a mortgage that needs to be paid back? Are you aware of all the choices available for paying off your mortgage faster? If you are planning to complete your mortgage repayments before the mortgage period ends, you can potentially save thousands of dollars to be paid in interest over the years. In this blog, we’ll discuss some mortgage options and repayment plans that can help you pay off your mortgage debt faster and own you a property sooner.

  • Opt for an open mortgage

A fully open mortgage allows the borrower to repay the mortgage in full or in part at any time without incurring penalties. It’s vital to understand that an open rate mortgage will have a higher rate. However, if you think that your cash flow will improve and you will be able to make lump sum payments, this option can help you pay down your mortgage amount much faster.

  • Periodic payment increases

Another approach to pay off the mortgage faster while saving money is to increase the monthly amount. This option allows the borrower to increase the payment by up to 100% of the original amount during the life of the mortgage. It’s also worth noting that the sooner you boost your payment, the better. Increasing the payment later in the mortgage cycle will save you money, but the impact will be less noticeable.

  • Lump sum payment

By making a lump sum payment, the amount is applied directly to the principal amount. And, like with the periodic payment increase option, the lump sum payment will be more significant if made earlier. If you can make a lump sum payment early in the mortgage process and then gradually increase your monthly mortgage payments over the course of the loan, you will save significantly.

  • Accelerated Payments

You can also request an increase in your payment before the first payment begins. By converting your mortgage payment to accelerated monthly or weekly payments, you will be making an extra monthly payment each year. This can save you tens of thousands of dollars over the course of the mortgage, allowing you to pay it off faster. 

There are numerous ways to pay off your mortgage faster, but it’s critical to understand which options are available and best for you. If you’re ready to buy a property you can call yours and need any help with the mortgage, Satbir Bhullar is here to help you out. I am one of the best mortgage consultants in Abbotsford and can help you find the most competitive mortgage deal with terms and conditions that allow you to save big over the time. If you currently have a mortgage, we’ll go over your current terms and conditions to see how you might pay it off sooner and save money in the process.