Fast-tracking your mortgage

When it comes to putting your mortgage on the fast track, a little can go a long way. Here are some strategies for saving on interest costs and shaving years off your mortgage.

Increase your payment frequency. Opt for biweekly accelerated payments – take your current monthly payment and divide it in two, then set those payments for every two weeks. You'll make 26 payments a year instead of 24, and pay off your mortgage significantly faster than you would if you were making monthly payments.

Amortize frugally. While 35-year amortization periods are fairly common, don't assume that's the best option for your situation. If you can afford the higher payments, opting for a shorter amortization period will not only get you debt-free sooner, but save you thousands of dollars in the long run.

Make lump sum payments. The portion of your monthly blended mortgage payment allocated toward interest is significantly higher in the infancy of your mortgage, and decreases gradually as you pay down the principal. This means that the sooner in the life of your mortgage you make a lump sum payment – whether it's your annual bonus, your income tax refund or just savings you've socked away throughout the year – the more dramatic its long-term effect will be.

Adjust your payments. If your term is coming up for renewal, you may be able to secure a lower monthly payment by taking advantage of current interest rates, which are still relatively low. But if you can still afford the payments you're making now, keep them the same amount – you'll be paying down more towards the principal without affecting your current cash flow. Likewise, if you get a raise, consider allocating a portion of your pay raise toward increasing your monthly payment – your monthly budget will never know the difference.

Please contact us with any queries that you might have,



Rick Moran, AMP, OMB # M08001997

Turn to an Independent Mortgage Professional for Maximum Choice

For Canadians looking for a mortgage, rates continue to be low by historical standards. To get a competitive rate and the financing features that fit their needs, consumers need access to a range of mortgage options.
Canadians wanting to get a new mortgage or renew / re-finance an existing mortgage can approach:
• a financial institution and select from their particular menu of mortgage options and rates
• a mortgage representative who must sell a specific line of mortgage products
-or-
• an independent mortgage broker, who can offer a full range of mortgage types and interest rate options, and who works only on his or her client's behalf.
By approaching one or two financial institutions and choosing from their in-house mortgage products, many consumers miss out on an array of mortgage choices that could suit their needs better and save them a lot of money over the long term. Comparing different mortgage types and interest rates on your own is a time consuming and rather intimidating task. And if you deal with a financial institution directly and your application is declined, you must start over from scratch with another institution.
An Invis independent mortgage professional has access to a wide range of mortgage lenders and can guide you to a mortgage that suits your individual needs, at a very competitive rate. They can work with lenders including chartered banks, credit unions, and trust companies, as well as other sources of funds such as life insurance companies and pension funds. Best of all, this objective expertise is available to you for free in most cases, because the selected lending institution pays Invis to source the mortgage business. Please feel free to contact me with any question that you may have.

Rick Moran, AMP, OMB # M08001997