Increase your payment frequency.
When you make a payment every two weeks instead of every month, you'll only be making one extra monthly payment per year and you'll cut your interest cost over the life of your mortgage. To make it easy, just schedule your payments for the same time you get paid.
Shorten your amortization period.
You can choose the amortization that suits you best, up to 30 years for a conventional mortgage or up to 25 years for a high-ratio mortgage (where your downpayment was less than 20% of your home’s purchase price). To save on interest, choose the shortest amortization period that you can manage.
Increase your regular payment.
You can increase your payments up to 20% each year. You'll reduce your mortgage principal faster, which means you'll pay less interest.
Choose a mortgage with a prepayment option.
Make an extra payment of up to 20% of the original principal each year. You'll pay less interest and be free of your mortgage sooner.
Invest your tax refunds and cash windfalls.
If you're lucky enough to get a cash windfall or a tax refund, put it towards a lump-sum mortgage payment. Our open-term mortgages let you make payments ahead of schedule without paying a fee. For fixed-term mortgages, you can prepay up to 20% of your original balance once per mortgage year and increase payments by up to 20% once per mortgage year.
Keep your payments high.
If interest rates rise after you’ve taken out your mortgage, when it comes time to renew, you may have to make higher payments to stay on track with your amortization. We recommend that you keep your payments as high as you can comfortably afford to pay off your mortgage.
