Budget for it first.
There are a number of strategies to help homeowners pay off mortgages faster; all involve coming up with more cash.
Your first step should be to figure out if you have a bending budget so you can put more money toward your mortgage.
Accelerate your payments.
If you do have the extra budget room, consider changing your payment plan.
For example, if you go on a bi-weekly accelerated schedule, making a payment every 14 days, instead of twice a month, you’ll have made the equivalent of 26 payments, by the end of the year.
“Smaller, more frequent payments will reduce your interest costs and get you mortgage-free faster,” says , director of mortgage advice with TD Canada Trust. “And, if you tie it in to your payroll, you don’t even miss it.”
Increase your monthly payments.
Make additional mortgage payments alongside their regular monthly payments.
A homeowner may be allowed to pay between 10 to 100 per cent of the mortgage payment and have it go directly toward paying down the principal, not the interest.
Make One Big Payment.
If for some reason you come into some extra money, making a lump sum payment
(Note: the lump sum contribution is over and above the amount you are allowed to contribute in additional bi-weekly payments.)
Reduce your amortization.
The strategies outlined earlier – making accelerated, additional and lump sum payments – can effectively reduce your amortization period, while still giving you financial flexibility.