Paying off your mortgage early frees up money for everything else. These strategies use the prepayment privileges built into most Canadian mortgages.
1. Switch to accelerated payments
Accelerated bi-weekly payments add up to one extra monthly payment each year. On a typical 25-year mortgage, that can cut roughly 3 years off.
2. Increase your payment
Most lenders let you raise your payment by 10–20% a year. Even $100 more per payment goes straight to principal.
3. Make lump-sum payments
Put bonuses, tax refunds or gifts toward your mortgage. Many lenders allow 10–20% of the original balance each year without a penalty.
4. Keep your payment the same when rates drop
If you renew at a lower rate, keep paying the old amount. The difference shortens your amortization.
5. Shop your renewal
A better rate at renewal means more of every payment goes to principal.
See the impact with the prepayment options in our Mortgage Payment Calculator.