Here are some great tips from CIBC for getting your mortgage paid down and freeing up a large part of your paycheque for other, perhaps more interesting, things:
A mortgage is a big commitment. Most mortgages are paid over 25 years but we have some tips to help you pay yours off faster. Reducing the number of years you make mortgage payments can add up to big savings.
There are several ways to “pay down” your mortgage and get out of debt faster.
1. You can increase your payment amount when you arrange your mortgage, or at any time during the term. This allows you to pay down your principal faster.
For example, if you increased your mortgage payment amount by $170 from $830 to $1,000 you could save almost $48,000 in interest over the entire amortization period of your mortgage. You could also own your home about 8 years earlier.
2. You can make payments more frequently which saves you money in interest charges over the long run as it allows you to pay down your principal faster.
For example if you made accelerated bi-weekly payments of $415 instead of monthly payments of $830, you could save almost $27,000 in interest over the entire amortization period of your mortgage. This would allow you to own your home about 4.5 years sooner.
Source: CIBC - Mortgage
