Tips for Paying off Your Mortgage

Tips for Paying off Your Mortgage

It’s become a refrain that Canadians are more in debt now than ever before. If you’re just starting your family, for instance, you’re in a period of your life where you’re more likely to accrue debt than pay it off quickly. Of these debts, your mortgage may not be the most urgent. However, debt isn’t something you have to carry forever.

If you’ve done your homework and have worked effectively with your local Vancouver mortgage broker, you have a mortgage that works for your salary and your plans for the future.

Even if you have a manageable mortgage, there are ways that you can pay off your mortgage even quicker. Here are some easy examples:

Extra payments

No matter if you’ve only recently gotten your mortgage or if you’ve been paying it off for years, paying more than your regular payments whenever you can is always a good idea. Often, banks and other institutions offering mortgages will have caps on what kinds of extra payments you can make, but you should take advantage of them whenever you can. If you can chip away at your principle often enough, you can take years off the amortization.

Bi-weekly payments

Depending on your situation, negotiating with your mortgage lenders for a bi-weekly payment schedule may make sense to pay down your Vancouver home. They can help you budget more easily and shave some time off your amortization.

Lump-sum payment

Most banks and other mortgage lenders in Vancouver will also allow you to make annual lump-sum payments towards your mortgage. Like paying more for your regular payments, there are usually caps on how much you can pay for a lump sum. These annual lump-sum payments will often go towards your principal rather than your interest, so they’re definitely worth it. If you starting making these payments early and make them regularly, they can have a huge impact on how quickly you can pay off your debt.

Use tax refunds, raises, etc.

If you’re in a position to pay off your mortgage faster, there are a lot of tricks you can use to find the money to make these extra payments. If you have budgeted well for you and your family, you’ll have a good idea of what percentage of your income is available to you. You can use unexpected earnings above your necessities to pay down debt. For instance, tax refunds, raises at work or even annual bonuses can be used to pay down your mortgage quickly.

Mortgages are long-term commitments

Over the 15, 20, or even 30 years that your mortgage may last, your situation will probably change. With the help of a Vancouver mortgage broker, you can find new ways to pay off or restructure your mortgage that can get you debt-free as quickly as possible. We at Rala Investments Ltd. are here for you. Contact us today to find out how we can help.