Mortgages: It pays to be frugal
It is a question on the mind of anyone who has a mortgage or is planning to take one out: “what can I do to cut the cost of borrowing?”
There are several ways to save money and pay off your mortgage faster. The Financial Post gives several examples as to how this can be achieved. Increasing your down payment, decreasing the amortization period and increasing the frequency of your payments are just a few.
The benefit of increasing your down payment is simple: The larger the down payment, the smaller the mortgage. This will also decrease your monthly payments, making it easier to budget.
If you choose to decrease the amortization period of your mortgage, your monthly payment will increase. However, the total interest on your mortgage will decrease and allow you to build equity in your home that much faster.
A very simple way to pay your mortgage faster is to increase the frequency of your payments. Talk to your Mortgage Agent or use a mortgage calculator to find out how switching from monthly to bi-weekly payments can benefit you.