🏡 Here’s a practical and effective plan for Canadians to shave 10 years off the life of their mortgage — without dramatically changing your lifestyle. This plan combines strategies to reduce interest and maximize your payments strategically.

🔹 1. Start with a Mortgage Check-Up
Review your amortization and interest rate. If it’s over 25 years or your rate is above 5%, you’re likely paying too much in interest. This is a free service we provide for all new and existing mortgage clients.

We will help you determine if a refinance or early renewal could save you thousands and reduce amortization.

🔹 2. Accelerate Your Payment Frequency
Switch from monthly to bi-weekly accelerated payments.

This results in 1 extra monthly payment per year.

Example: On a $500,000 mortgage at 5.5%, this can cut over 3 years off your term.

🔹 3. Increase Your Payments
Use your lender’s prepayment privileges to increase your regular payment by 10–20%.

Even an extra $100/month can shave years off your mortgage.

🔹 4. Make Lump Sum Payments Annually
Apply bonuses, tax refunds, or side income toward your mortgage as lump sum payments.

Most lenders allow up to 15–20% of your original mortgage as a lump sum annually without penalty.

🔹 5. Round Up Your Payments
If your payment is $1,184, round it to $1,200 or $1,250. You won’t feel a big difference month to month, but it can cut interest and time drastically.

🔹 6. Refinance Strategically
Refinance to a lower rate or shorter term if rates drop or your financial situation improves.

Consider refinancing to a 15- or 20-year term if you can handle slightly higher payments.

🔹 7. Avoid Mortgage Penalties Smartly
Time prepayments for your mortgage anniversary date.

Know your lender’s rules on lump sums, increases, and penalties to avoid surprises.

🔹 8. Use a Mortgage Prepayment Calculator
We do this for you with your mortgage check-up and will help you to visualize how extra payments reduce your amortization.

🔹 9. Automate Extra Payments
Automate your bi-weekly accelerated payments and any extra amount to make it consistent and effortless.

🔹 10. Review and Adjust Annually
Review your mortgage annually with us. Markets and rates change and so do your circumstances. Don’t assume this should only be done at the end of your term.

Re-evaluate your goals and income to determine if you can boost payments further.

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💡 Example: $500,000 Mortgage @ 5.5% Interest, 25-Year Term
Bi-weekly accelerated payments: Save ~3 years

$200/month extra: Save ~4–5 more years

$5,000 lump sum yearly: Save 2–3 more years
➡ Result: Mortgage paid off in ~15 years instead of 25

🚀 Final Tip:
Every extra dollar goes toward the principal early in your mortgage. The first 5 years are the most powerful time to make additional payments and shorten your mortgage dramatically. So if you have not had a mortgage check-up lately, book in with us, we will help you. It takes less effort than you think to become mortgage free.