According to a recent RBC Home Ownership survey, 65 per cent of Canadian homeowners are worried about mortgage rate increases and 56 per cent admit that their mortgage is higher than they expected.
"Flexible payment options can help take some of the guesswork out of interest rate increases," said Marcia Moffat, RBC head of home equity financing.
"Speaking with a mortgage specialist and making a few simple changes can help you save thousands on interest costs as well as take years off your mortgage."
Here are a couple tips to help you pay off your mortgage even faster.
Make annual mortgage payments on the principal - many mortgages allow you to make a lump sum payment once every 12 months or at renewal time, which is applied directly to the principal.
If you come into a large sum of money through an inheritance or bonus consider making a prepayment, which can shave years off your mortgage.
If you double up your payments once per year for 25 years, on a $250,000 25-year mortgage at five per cent interest - you can save over $30,000 and shave 3.5 years from your amortization term.
Switch to a bi-weekly mortgage payment schedule - changing to an accelerated bi-weekly payment can be an easy adjustment that will help you save on mortgage interest.
The bi-weekly accelerated payment works to help you pay down your mortgage faster as you actually end up making 26 bi-weekly payments a year versus 12 monthly payments - this adds up to one extra monthly payment every year.