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What to do, what to see? In Port Alberni, BC

Your road to mortgage freedom

Posted on Jun 4, 2015 in Mortgage Market Updates and News

Paying off your mortgage may be the best investment you can make. A survey conducted in 2013 by Canada Mortgage and Housing Corporation (CMHC) found that 68% of homeowners felt they could pay off their mortgage early. Last year a Scotiabank poll found that almost two-thirds of mortgage-holders agreed they could pay off their mortgage faster without impacting their lifestyle. Here are some ways to save some serious money and become mortgage-free faster. It only takes a few small steps and saves you thousands of dollars in the process.

Accelerate your payment frequency

This is popular. If you're making monthly payments on a $300,000 mortgage with a 3% interest rate, amortized over 25 years, it will cost you $125,920.44 in interest. By increasing your payment frequency to accelerated bi-weekly payments, you will shave nearly three years off of your amortization schedule, and save $16,058.57 in interest.

Round up your mortgage payment.

This is pretty painless. Every dollar counts when it comes to paying off your mortgage. If your accelerated bi-weekly mortgage payments are $543, consider rounding up to $600 instead. The extra $57 will save you thousands of dollars in interest over the term of your mortgage and you'll barely notice the difference in your monthly budget.

Refinance to a shorter-term amortization

You may be able to refinance into a mortgage with a lower amortization. Your payments will be higher on a 15-year loan, but perhaps not as high as you think, especially in the current low-interest environment.

Make lump sum payments

Adding just $1,000 extra to your mortgage per year will allow you to pay it off years sooner and, combined with accelerated bi-weekly payments, chip thousands of dollars off the interest you pay for your home.

A lower interest rate

With mortgage rates at all-time lows it doesn't hurt to negotiate a better rate. The difference between a 2.59% rate and a 3.2% rate adds up to thousands of dollars in interest over the remaining term of the mortgage.

Interestingly, the Scotiabank poll also showed that 21% of mortgage holders have not taken any steps to pay down their mortgage for the following reasons:

  1. Don't have available funds
  2. Have other payment priorities
  3. Don't know what steps to take 
The freedom that being completely debt-free brings is a dream for many Canadians. If you're unsure of what your next step should be, call me. Together we can review your mortgage, look at your financial picture and devise a mortgage-reduction plan that works for you.


Sharie Minions
TMG The Mortgage Group Canada Inc
250.730.0239

Contact

I'm looking forward to connecting. Due to being in and out of meetings both for council and business, email is typically the best way to get in touch with me. If you prefer to call, that's fine as well, it just may take me slightly longer to get back to you. Texting is also welcomed.
  • TMG - The Mortgage Group Canada Inc.
    3610 Estevan Drive, Port Alberni, BC, V9Y 5R2
  • Cell: 250.730.0239
  • Fax: 1.877.474.5346
  • Email: sharie@mortgagegrp.com
  • RE/MAX Mid-Island Realty
    4213 Princess Road, Port Alberni, BC, V9Y 5R2
  • Phone: 250.723.5666

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