Why it pays to make pre-payments

by | Jan 25, 2019 | Mortgages

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If you want to make some financial headway this year, let’s discuss how paying down your mortgage more aggressively will save you money in the long term.

Consider aggressively paying down your mortgage using pre-payment privileges. Although you’ve probably heard this before, maybe now is the time you decide to act.

Most mortgages allow you to pay down 10–20% of the original principal mortgage amount as a lump sum or increase your payments by 10–20%. Did you get a raise at the end of 2018? Now might be a good time to increase your mortgage payments to match.

Any money that you put on your mortgage as a pre-payment goes entirely towards the principal balance and is not a pre-payment of interest.

Our goal is not only to help you get the best mortgage available, but also to help you get rid of that mortgage as quickly as possible.

Questions on your mortgage, or want to compare your mortgage to what is currently available? Please contact us.