HowcanI payoff mymortage
It's smart to speedup the process.If you afford to, reduce your schedulefrom z5 to
have a z5-yearmortgage for $3oo,oooat an 15 years. Your biweekly payments would
averagerate of 5.75 per cent, you'll pay then increaseto sr,r4o (still using our sample
$z6z,5oo interest.Here aresix ways to pay mortgage above), resulting in savings of
offyour mortgagein record time. $116,6oo that should build a verv healthv
retirement savings nd.
Even if you re pre-approvedfor a big mort- your
5. Cetebrate anniversary
gage,look for a lessexpensivehome. You'll Majorbanks and lending institutions allow
sav€en interest and wont have to rely on you to pay at leastan additional ro per cenr
your line of credit to make ends meet. Never oI yorrr mortgageon your mortgageanniver-
let your combined debts (mortgage, car sary date,so evenifyou do nothing else,use
loan, studentloan, credit cards,etc.)exceed your tax refund to top up your paymenrs.
4o per cent ofyour grossincome. The averagetax filer receivedabout $r,roo
last year-if you did nothing but apply that
broker to the sample mortgage every year, youd
Yes,your bank should rep^y yovr loyalty own your home eight months early and save
with its bestrates,but that isn t going to fly about$3o,4oo.
with its shareholders.A mortgagebroker
will shop around to ger you the best rate 6.Tryanopenrate
available,and you don t haveto pay for their Once youve paid offat leastz5 per cent of
servicesif your mortgage is with a major the value ofyour home, considera variable-
lender (brokers Nepaidbybanks and credit rate rnortgage, which changes with the
unions, but are still impartial). You'll save prime lending rare. You're exposed to the
about halfa per cent over postedrates.On risk ofhigher rares,but ..r.ur.h hu, shown
the mortgagementioned above,you'd save you will still savesignificantly.
more than $z6,ooo interesrover 25vears.
in Youmaynotbe ableto afford anyor all of
Check the Yellow Pages your prJrri.rcial
or thesestrategies right now-or your current
mortgage brokersassociation. mortgageagreementmay not be ableto ac-
commodate them. But add them ro your
3. Pay often financial to-do list and implemer,, ,h.-
Payyour mortgage every two weeks rather when you can.You'llbe "fre.i ,oo.r"r.
than monthly. Thke our sample mortgage:if
you divide the monthly payment of$r,875in FinanciaIexpert
halfand make a payment of $938every two LoriBamber spentmore
weeks, your morrgage will disappear four than16years hetpingCanadi-
z yearsearlier- savingyou $48,ooo. anstakecareoftheir money.
4. Shorten schedule
You can achieve a similar effecr by shorten-
I ing yoqr amortiza:J'onschedule. If you can
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l A uGusr2or. 1 67