The dream of the homeowner is to pay off your mortgage faster so that you can start putting money into other things. Your plan may be to leverage your current property as equity for further investments, it may be to put money into renovations or just to tuck the excess funds away for retirement.
Whatever your post-mortgage plans may be, the idea of living mortgage-free is appealing to everyone. If you’re wondering how to pay your mortgage in a better way than you already are, in order to see yourself further ahead in the future, here are some tips that will get you closer to your goals.
Do More Than You Have To
Think of your mortgage payment as an enforced savings. Because you’re paying into a property investment, you’re theoretically gaining every time that you make a payment. With this in mind, put extra towards your mortgage each month by rounding up. If you come into extra money every now and again, put it towards your mortgage. Most banks and lenders give you the opportunity to make an extra lump sum payment once a year. Contribute highly to your RRSP whenever possible, and use the returns that you get at tax time towards your mortgage payment. You won’t regret overpaying, whether by a little or a lot.
Make Bi-Weekly Payments
Instead of paying your mortgage on a monthly basis, instead set up direct bi-weekly payments every time that you are paid for work. Sure, you may be a little more house poor for a while, but you’ll also accelerate your progress in the homeowners’ game.
Keep Your Ear to the Ground
Just because you have a mortgage doesn’t mean that nothing will change. The more you know about interest rates and options, the better off you’ll be. There is a chance that you’ll be able to renegotiate a mortgage deal in the future that makes breaking your current contract worthwhile. You never know if you’re not listening.