Say Goodbye To Your Mortgage Faster
Filed Under Contributors, Interest Rates, Mortgages · Tagged: General
According to a recent survey, one in four Canadians over the age of 50, who have at least $100,000 in assets, retired with some form of debt. Nearly 25% had a mortgage on their principal residence and 28% said they took on more debt after retirement. Scary. Today I wanted to talk about how you can own your home faster and save money in the process. Why? So you can retire debt free and focus on doing the things you want to do. No matter what type of mortgage financing you are looking for, it makes sense to speak to me first.
Strategy #1
Increase the frequency of your payments
If you’re paying your mortgage on a monthly basis, switch your payments to bi-weekly. As a result, you will actually make 26 payments a year. This will help you save money and reduce your amortization.
Strategy #2
Take advantage of increased payment options
TD Canada Trust customers can increase their payments by up to 100% of their regular payment amount at any time throughout the term of the mortgage. You may be suprised by how easy it is to adjust your lifestlye to a slight increase in your mortgage payments.
Strategy#3
Take advantage of lump sum payments
In Addition to increased payment options, TD offers you the opportunity to make lump sum payments on your mortgage for up to 15% of your original mortgage amount per year on a closed term. Annual bonuses or tax refunds provide great oppotrunities to take advantage of this option. Even an annual lump sum payment of 2% will make a huge difference.
Strategy #4
Take a shorter amortization
In addition to the strategies above, you may choose to shorten your amortization from 25 years to 10, 15 or 20 years instead. The result is a slightly higher mortgage payment but significant interest savings over time.
Strategy#5
Pay the same amount
For those of you who decide to take on a variable mortgage, adjust your monthly payments to what you would pay if you were on a fixed term mortgage. The result? Even more interest savings!
Sincerely,
Josephine Ng
www.tdmortgage.wordpress.com
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