If you are looking to pay down your mortgage faster, here are three options to help you achieve your goal:
1) Choose an ‘accelerated’ option for your mortgage payments
An accelerated payment option lets you make weekly or biweekly payments while putting about the same amount of money toward your mortgage as a monthly payment. Accelerated payments can save you money on interest charges. By accelerating your payments, you make the equivalent of one extra monthly payment per year.
2) Keep your monthly payments the same when you renew your mortgage
When you renew or renegotiate your mortgage, you may be able to get a lower interest rate. If so, you’ll have the option to reduce the amount of your regular payments. If you decide to keep your regular payments the same, you’ll be able to pay off your mortgage faster.
3) Make a lump-sum payment
You can make a lump-sum payment on top of your regular mortgage payments to reduce the outstanding balance of your mortgage. You may only be able to put a limited amount of money toward your mortgage. The amount will be written in your mortgage contract. If you put more money toward your mortgage that your prepayment privileges allow, you may have to pay a prepayment penalty.