Pay Off Your Mortgage Faster
Mortgages in Canada are generally amortized between 25 and 35 year terms. While this seems a long time, it does not have to take anyone that long to pay off their mortgage if they choose to do so in a shorter period of time.
With a little bit of thinking ahead, and a small bit of sacrifice, most people can manage to pay off their mortgage in a much shorter period of time by taking positive steps such as:
- Making mortgage payments each week, or even every other week. Both options lower your interest paid over the term of your mortgage and can result in the equivalent of an extra month’s mortgage payment each year. Paying your mortgage in this way can take your mortgage from 25 years down to approximately 21.
- When your income increases, increase the amount of your mortgage payments. Let’s say you get a 5% raise each year at work. If you put that extra 5% of your income into your mortgage, your mortgage balance will drop much faster without feeling like you are changing your spending habits.
- Mortgage lenders will also allow you to make extra payments on your mortgage balance each year. Just about everyone finds themselves with money they were not expecting at some point or another. Maybe you inherited some money from a distant relative or you received a nice holiday bonus at work. Apply this money to your mortgage as a lump-sum payment and watch the results.
By applying these strategies consistently over time, you will save money, pay less interest and pay off your mortgage years faster!
About Patricia Kirkham, AMP, Senior Mortgage Broker with Dominion Lending Centres Clarity Mortgages
Patricia Kirkham has been actively assisting clients in the mortgage industry for over 25 years! In 1991, she partnered with Dennis Petersen to become the Vice-President and Broker of Record at Dominion Lending Centres Westcor which has most recently merged with Dominion Lending Centres Regional Mortgage Group in 2016 (now Dominion Lending Centres Clarity Mortgages). Over the years she has thoroughly enjoyed helping many clients obtain their dream homes, refinance mortgages for investments, home improvements and consolidating debt. Her wealth of knowledge and experience has enabled her to grow as a professional, and she is even a certified reverse mortgage specialist with Home Equity Bank, and a mortgage debt consolidation specialist. This means that regardless of your situation, Patricia will have a solution to help.
With access to more than 230 lending institutions, including big banks, credit unions and trust companies, our licensed team of mortgage professionals is familiar with a vast array of available mortgage products – ranging from first-time homebuyer programs to financing for the self-employed to financing for those with credit blemishes.
And, best of all, Dominion Lending Centres’ mortgage professionals work for you – not the lenders – to ensure you receive the best rates and products available in today’s marketplace. Whether you’re looking to purchase your very first home or upgrade to a new home, renew your existing mortgage, refinance your mortgage to free up some equity, purchase investment properties or vacation homes, or lease business-related equipment, Dominion Lending Centres has a variety of products available to meet your unique needs. Our mortgage professionals are experts in their field and many are ranked among the best nationally. Launched in January 2006, we were named Best Newcomer (Mortgage Brokerage Firm) at the prestigious CMP Canadian Mortgage Awards 2008 – the Oscars of the mortgage brokering industry. At the 2009 CMAs, we received the Best Branding Award, and again in 2010, with the addition of the prestigious title of Mortgage Brokerage of the Year and Best Advertising. At the 2011 Awards, we again walked award with Best Advertising, and in 2012 we were honoured with: National Broker Network of the Year; Best Advertising; and Best Branding. Dominion Lending Centres is also honoured to be ranked 32nd on the 2012 annual PROFIT 200 ranking of Canada’s Fastest-Growing Companies by PROFIT Magazine. Ranking Canada’s Fastest-Growing Companies by five-year revenue growth, the PROFIT 200 profiles the country’s most successful growth companies. PROFIT 200 is Canada’s largest annual celebration of entrepreneurial achievement. In both 2009 and 2010, Dominion Lending Centres also earned spots on the PROFIT HOT 50 List of Canadian Emerging Growth Companies. The PROFIT HOT 50 ranks the top 50 young businesses in Canada by two-year revenue growth. Dominion Lending Centres’ mortgage professionals are available anytime, anywhere, evenings and weekends – and we’ll even come to you!