Paying off a mortgage is a dream for many Canadians. It’s hard to figure out the best way to pay it off, so we’ve compiled some helpful tips on how you can pay your mortgage faster in Canada. Follow these tips and your house will be mortgage-free sooner than you think!
It’s not easy figuring out how to make your monthly payments go further when they’re already stretched thin. We all know that paying off our mortgages as quickly as possible is one of the best ways to build wealth, but it’s also difficult with day-to-day expenses like groceries and gas prices constantly rising.
We’ve put together some great advice on how you can save money on your monthly mortgage payments. Follow these tips to get rid of that mortgage in Canada!
1. Make A Budget And Stick To It
It’s important to stay on top of your budget. If you don’t have one, make sure that any spending habits are documented in an account, so they can be reviewed at the end of each month or week for compliance with company policy, regarding accountability and transparency.
A great way I’ve found success when managing my own personal finances is by creating budgets beforehand – this helps me avoid surprises later down line!
2. Pay Your Mortgage Bi-Weekly Instead Of Monthly
Consider paying your mortgage bi-weekly instead of monthly, to save on interest. It will reduce the total amount paid for each billing cycle and give you more money in hand at year-end!
3. Make Lump-Sum Payments When You Can Afford It
It’s never too late to start making lump sum payments on your debts. You can afford it and you’ll be doing yourself, as well as the rest of those who hold loans or financial obligations towards you, a favor by paying off what needs to be paid in full, immediately, so they are released from their responsibility!
4. Increase Your Mortgage Payments By A Small Amount Each Year
By increasing your mortgage by just a small amount each year, you give yourself an opportunity to save for further investments or expenses that may arise in the future.
The more savings there are on hand before an emergency happens means less borrowing is needed during those times when something unexpected comes up!
5. Get A Home Equity Line Of Credit (Heloc) To Pay Off Your Mortgage Sooner
Homeowners looking to pay off their mortgages sooner should consider getting an instant cash infusion from a home equity line of credit.
Just like a regular mortgage, the interest rates on your HELOC will be fixed and depend entirely upon what you qualify for, based on criteria such as debt-to-income ratio or down payment percentage, in order to get approval.
The advantage is that this type of loan can come with lower fees than traditional methods, because there’s no need for any additional documentation; all one needs now, are personal details at the time when they’re applying!
6. Refinance Your Mortgage At A Lower Interest Rate
A good way you can do this is by asking for refinancing when the bank’s rates change. It may seem like a daunting task, but with our help today, it won’t be that difficult! We’ll take care of everything from getting pre-qualified all through closing so there isn’t anything holding back an approval decision – guaranteed 100%.
7. Rent Out Rooms In Your House, To Help Cover The Cost Of Your Mortgage Payments
You might be surprised to learn that there are many people who rent out their homes and use the money they receive from renting, as opposed to using traditional methods such as spending on vacations or taking care of personal needs.
This is because most homeowners need more than just one mortgage payment per month; instead, it’s common for them to have two mortgages at interest rates higher than what banks offer today (in order not to risk losing equity), plus another loan that covers any costs related with owning a property, like insurance premiums, etc.
The Benefit?
You Will Now Make Your Monthly Housing Payments While Also Contributing Towards Funds for Things Important. Live Below Your Means
The monthly savings you make from paying your rent with money that is already set aside for other important things will allow you to live below what’s considered “the means” in society.
There are many ways to pay off your mortgage faster in Canada.
By following the tips we’ve provided, you can save money on interest and be mortgage-free sooner than you think! Whether you choose to increase your payments by a small amount each year, get a HELOC, or refinance your mortgage at a lower interest rate, there are plenty of options available to help you reach your goal.
So what are you waiting for? Start paying off that mortgage today!
Whether you’re a first-time buyer or trying to refinance your mortgage, hiring a professional can help make the process of buying and refinancing easier.
Mortgage brokers give their customers access to different lenders and products that might not otherwise come across their radar.
They also know how much money will need, in order to purchase a new property. If you have any questions about this article please contact us at [email protected]
