Want to Cut Years Off Your Mortgage?
Ask any homeowner this question: “want to cut years off your mortgage?” The answer will likely be a resounding “yes.” But taking that step may not seem so simple to most Canadians. Most Canadians accept the standard mortgage terms and make their monthly payments accordingly.
But if you want to really save money, that means cutting years off your mortgage. When you do this, it means saving on interest fees and, most importantly, putting money back into your pocket.
Most banks and lenders prefer that buyers do things the traditional way because it means more money for them in interest revenue. But go away from the norm and change your payment frequency to save money and cut years off of your mortgage.
Typically, mortgage payments can be made as often as every two weeks, even weekly. Increase the frequency of your payments and you can save thousands while you cut years off your mortgage schedule.
Most banks and lenders will offer accelerated payment schedules, but you have to ask for that information. Super Brokers has qualified mortgage brokers that can answer the questions you might have when it comes to payment frequency increases.
Super Brokers can also help you find the best mortgage options to suit your personal financial needs.
How Does Increasing Payment Frequency Cut Years Off My Mortgage?
The simple and short explanation: interest. When you borrow money from a lender, you are charged interest and, in some cases, a yearly charge for the right to borrow. That interest gets added to the principal (or original loan amount). Over time, the interest accumulates.
When you increase your payment frequency, you pay more off of the original loan amount and incur less interest over time. That can mean serious savings over the life of your loan.
See the difference that increasing your payment frequency can make by using our mortgage calculator. Super Brokers is here to make your increased payment plan a reality.