|Good news! You can baby step your way to mortgage freedom and save thousands of dollars in interest in the process. According to Scotiabank’s Mortgage Landscape Study, almost two-thirds of mortgage holders agree they could pay off their mortgage faster without impacting their lifestyle. How much does it take — only an extra $20 a month.While many homeowners think in terms of lump-sum payments, which are a great option, there are other ways to save money and pay down that debt. Seventy-nine per cent of mortgage holders have taken at least one of these steps:1. Refinancing for a lower interest rate
2. Renegotiating for a lower interest rate
3. Switching to bi-weekly payments
4. Increasing amount of regular payments
5. Lump-sum payments
1. Don’t have available funds
The poll also revealed that 51% of mortgagors have spoken to their mortgage professional about how they can become mortgage-free faster.
It’s easy to forget about your mortgage when you’re making automatic payments. It’s a good idea to keep up-to-date on mortgage options and interest rates .You could potentially save a ton of money by understanding those options.
The freedom that being completely debt-free brings is a dream for many Canadians. If you’re unsure of what your next step should be, it’s advisable to contact your mortgage professional. Together we can review your mortgage, look at your financial picture and devise a mortgage-reduction plan that works for you.
Guy Ward is a Mortgage Broker in Calgary, Alberta with TMG (The Mortgage Group Alberta).