Having a mortgage can be a huge financial burden, especially when you have other financial obligations. Unfortunately, this is a reality for many Canadians, as the Canadian housing market is one of the most expensive in the world. Paying off a mortgage can be a daunting task, but there are strategies you can use to speed up the process and get out of debt faster. Here are some of the best strategies for paying off your mortgage faster in Canada.
1. Make Bi-Weekly or Accelerated Payments: Making bi-weekly or accelerated payments can help you pay off your mortgage faster. With bi-weekly payments, you make a payment every two weeks rather than once a month. This can help you reduce the principal balance faster, as you are making more payments throughout the year. You can also make accelerated payments, where you pay more than the regular payment each month. This can help you pay off the loan faster and save money on interest.
2. Make Lump Sum Payments: Making lump sum payments can also help you pay off your mortgage faster. This can be done by taking out a home equity loan or line of credit, or by using any extra money you may have. The more money you put towards the principal balance, the faster you will be able to pay off the loan.
3. Refinance Your Mortgage: Refinancing your mortgage can help you reduce the interest rate, resulting in lower monthly payments. This can help you pay off the loan faster, as your extra payments can go towards the principal balance.
4. Put Extra Money Towards The Mortgage: If you have extra money, it can be a good idea to put it towards the mortgage. This can help you pay off the loan faster, as the extra money will go towards the principal balance.
5. Set Up Automatic Payments: Setting up automatic payments can help you stay on track with your mortgage payments. This will help ensure that you always make your payments on time, and that your extra payments go towards the principal balance.
These are some of the best strategies for paying off your mortgage faster in Canada. By following these strategies, you can make progress towards paying off your mortgage faster and get out of debt sooner.
