Switching to accelerated bi-weekly or accelerated weekly payments is one of the simplest ways to pay off your mortgage faster. Accelerated payments mean you make the equivalent of one extra monthly payment each year. This reduces your principal balance faster and saves you on interest over the life of the mortgage. Be mindful that regular bi-weekly or weekly payments won’t offer this advantage unless they are accelerated.

Why it works: Accelerated payments reduce the overall balance of your mortgage more quickly, shortening the amortization period and saving you interest.

If your budget allows, consider increasing your regular mortgage payments. Even a small increase can significantly reduce the total interest you’ll pay over the life of your loan. Most lenders allow you to increase your payments by a certain percentage without penalty, so take advantage of this option.

Why it works: By paying more than the required minimum, more of your payment goes toward the principal, helping you pay off the loan faster.

Many mortgages come with pre-payment privileges that allow you to make lump-sum payments directly toward the principal. These lump sums can come from bonuses, tax refunds, or any extra income. Check your mortgage terms to see how much extra you can contribute annually without penalty.

Why it works: Lump-sum payments go directly toward reducing the principal balance, which reduces the amount of interest charged over time.

Choosing a shorter amortization period, such as 20 or 25 years instead of 30, can significantly reduce the total interest you’ll pay. While this will increase your monthly payments, it will also help you pay off your mortgage faster and save you money in the long run.

Why it works: A shorter amortization period means fewer total payments and less interest accumulation over time.

A variable-rate mortgage with adjustable payments allows your payments to fluctuate with changes in the prime rate. If rates drop, consider maintaining your payment amount at the higher level. The difference between the new lower payment and your actual payment will go directly toward paying down the principal.

Why it works: This strategy ensures that you’re consistently paying down more of the principal when rates are low, helping you pay off your mortgage faster.

Whenever you receive unexpected funds, such as a bonus at work, a tax refund, or an inheritance, consider applying a portion of it toward your mortgage. Even small amounts applied directly to the principal can have a big impact over time.

• Why it works: Extra contributions reduce your principal, meaning you’ll pay less interest and shorten your mortgage term.

If interest rates drop, refinancing your mortgage at a lower rate can reduce your monthly payments. However, instead of lowering your payments, keep them at their current level or increase them. The additional funds will go directly toward the principal, helping you pay off the mortgage faster.

Why it works: Refinancing to a lower rate while maintaining higher payments allows you to pay down your mortgage more quickly without increasing your financial burden.

Most mortgages offer prepayment options that allow you to make extra payments up to a certain percentage of your original loan amount without incurring penalties. Take advantage of these options whenever possible to accelerate your mortgage payoff.

• Why it works: By using prepayment options, you can make additional payments without penalties, directly reducing your mortgage principal and shortening the loan period.

Rounding up your regular mortgage payments can make a small but significant difference over time. For example, if your payment is $987, round it up to $1,000. The extra amount goes directly toward the principal and helps reduce your overall mortgage balance faster.

• Why it works: Consistently adding even a small extra amount to each payment can help shorten your mortgage term and reduce interest costs.

When planning to pay off your mortgage faster, make sure you’re aware of any potential penalties for pre-payments or additional payments. Some lenders may charge fees if you exceed your pre-payment limits. Work with your mortgage broker to understand your options and avoid unnecessary costs.

• Why it works: Avoiding penalties ensures that all your extra payments go toward paying down the principal, maximizing your savings.

At Invis – Canada’s Best Mortgage, we’ve integrated the powerful Nettrakk system to help you pay off your mortgage faster and save thousands in interest. Nettrakk analyzes your mortgage details and financial goals to identify the best opportunities for accelerated payments, lump-sum contributions, and refinancing strategies. It continuously monitors market conditions and your mortgage progress to help you stay on track and make informed decisions about paying off your mortgage faster.

How Nettrakk helps: By offering personalized insights and tracking your progress, Nettrakk ensures you’re using the most effective strategies to reduce your mortgage term and maximize your savings.