Tips to pay off your Mortgage Faster

Posted on: December 11, 2020

Think that for decades to come, the mortgage will be part of your life. The amortization period for a mortgage is usually between 25 and 30 years; however, there could be many ways that you can apply based on your situation to pay off your mortgage faster and happily live mortgage free. In this blog, we would discuss how you can pay off your mortgage faster and save thousands of dollars.

1. Make Accelerated Bi-weekly Mortgage payments- You can make accelerated payments – bi-weekly payments instead of paying monthly. The option to make bi-weekly payments -26 payments a year, is available from most of the lenders verses making monthly payments i.e., 12 payments a year. This can cut down your mortgage principal substantially and can save you thousands of dollars in interest.

Making bi-weekly mortgage payments reduces your overall interest paid during the term of the mortgage. Also, another way you can speed up your mortgage payments is by paying a round figure bi-weekly. For e.g., a bi-weekly amount of $431.59, if you pay a round figure payment of $450.00, it will have a big outcome on the amount of principal paid on the mortgage.

2. Pay off your mortgage using your tax refund – You can use your tax refunds to pay off your mortgage faster. Before signing off the mortgage contract, make sure you carefully read the prepayment penalties. Lenders charge you penalties as you pay off the mortgage early, because lenders lose money on their returns.

Additionally, we ask the borrowers to keep in mind; If the penalties are hefty, it is not a good idea to use your savings to pay off the mortgage faster. Contact Mortgage Brokers Toronto to get an idea of how you can make a lump-sum payment to pay off your mortgage more quickly.

3. Make Lump-sum payments as per Lender’s policies – Before you apply this strategy to your case, you would need to check your lender’s policies first. Some lenders allow you to make annual lump sum payments to a certain amount at specified anniversary dates, where you can make such payments towards your mortgage to reduce your principal portion substantially.
Usually, this option does not impose penalties for the borrowers. If that option is available, it is greatly beneficial for the you as a borrower to pay off your principal faster.

4. Review your options before Mortgage Renewal – We suggest you review your options at the time of your Mortgage Renewal. When it is the time to renew your mortgage, you will receive a mortgage renewal letter from your existing lender to renew your mortgage within a specified time or a specific date. If you do not shop around and renew mortgage with your existing lender, you usually do not get the best rate at the time of renewal.

We at MB Mortgages, can review your current mortgage rate and terms with the existing lender. Because we work with several lenders, we can offer you a better rate, mortgage terms and conditions. We believe that the client situation changes over time and based on your current credit history and financial situation, we can shop around with dozens of lenders for you and can offer you the best and competitive mortgage rates.

We suggest that you must shop around at least 3 months before renewing your mortgage. In this way, you would have plenty of time to think about what you need and where to go to get the best rates. We have noticed, mostly borrowers shop around hardly 10-15 days before their renewal approaches which do not help them to get the desired results and unfortunately, they do not have another option except to stick with their existing lenders.

Why choose us-
As a leading Mortgage Brokerage, we have strong relations with multiple banks and numerous lenders. We work with Canada’s leading lenders to provide you a mortgage solution that fits your budget. Our mortgage and financing process is amazingly simple, we represent you and match you with the best suited mortgage as per your needs. This way we can guide you through this complicated process with our years of mortgage financing experience.
• We are dedicated and professional Accredited Mortgage Brokers in GTA.
• We are well trained and have experience in the mortgage financing field more than 10 years.
• We can shop around with different lenders to get you the best possible mortgage rates and conditions as well.
• We have different options for different income and credit level with access to number of private lenders to suit borrower’s needs.

Contact us-
We are a professional mortgage broker in GTA. We can help you secure a mortgage with best mortgage interest rates. We are located at 2896 Slough Street, Unit # 6, and Mississauga, ON L4T 1G3. Call MB Mortgages Inc. today at 905-458-6929/416-939-7131 for your queries or you can email us at: info@mbmortgages.ca or you can visit our website at www.mbmortgages.ca

The information provided in this blog post is intended to provide general information. You should consult with a mortgage professional to fully determine the scope of your situation. MB Mortgages shall not be held liable from usage of the information provided on this page. Individual situation may vary.