Acquiring a home mortgage is no easy feat to complete. It will be painstaking at times but rest assured that you’ll end up achieving. Paying your mortgage will largely demand a lot on your finances for some time, so you should be ready at all cause.

Your resources and finances are two important elements that you always need to consider in the stretch of paying your mortgage. Becoming debt-free is what you aspire and know that you have your options. To free yourself of your mortgage quickly should be desired because it would save you not just thousands of dollars but also will enable you to live a quality life. This is because you’re debt-free!

Most mortgages are repaid in blended, equal, regular installments, meaning that your payment is applied towards the principal as well as interest. In some cases, property taxes are also included in the payment.

Because we want you to pay off your mortgage faster and wiser, we have outlined 5 doable ways for you to utilize.

1. Pre-payment

Many lending institutions will allow you to make extra lump sum payments towards the principal of the mortgage which can help you pay down your mortgage faster.

How much extra can you pay?

The amount you will be able to pay down will vary depending on the lender and the type of mortgage. Amounts of 15% of the original mortgage amount are common, but it can be as high as 25%.

When can you make these payments?

Lenders usually allow you to make a payment on the anniversary date of your mortgage. You may also be able to split the payment and pay it in installments throughout the year using a scheduled payment plan or by increasing your regular mortgage payment.

Be sure to confirm the details of these pre-payment features with your mortgage broker and lender because if you miss the date for payment, you may have to wait until the next anniversary.

2. Payment Frequency

The most common method most people take is to make their payments monthly, although lenders do offer alternatives. Some of the other options available are semi-monthly, accelerated bi-weekly and accelerated weekly payments. The extra payments will help pay down the mortgage principal as well as decrease the amount of interest you pay. v

What does accelerated mean?

With an accelerated bi-weekly payment schedule, for example, you will end up making the equivalent of an extra month’s payment over the course of a year. If you take your monthly payment and divide it by 2 and multiply by 26, you will get your new annual payment.

If your mortgage payment is $2,000 a month, that would be $24,000 a year. Now, by making accelerated bi-weekly payments, you will be paying $1,000 every 2 weeks, for a total of $26,000 a year.

Payment Frequency Number of Payments Interest Principal




(25 years)

$230,000  $400,000
Accelerated bi-weekly



(22 years)

$198,000  $400,000
Interest saved: $32,000
Table 1 – Accelerated bi-weekly vs Monthly (3.99% 5-year fixed)


Choose a shorter amortization period

Choosing a shorter amortization period can also help you become mortgage-free faster. Your monthly payments will be higher compared to the normal 25-year amortization, but you will save thousands of dollars in interest.

30 25 20 15 10
Monthly Payment $1,900  $2,100  $2,400  $2,950  $4,000
Total Amount of Mortgage Payments $684,000  $630,000  $580,000 $530,000 $485,000
Table 2 – The effect of a shorter amortization chart


3. Consider Refinancing

You should be always on the lookout at your mortgage and be open at your payment options. Make a good review at least annually. This is a good practice of keeping yourself updated about your payments, as well as changes in mortgage interest rates and new deals being offered by banks.

When you see that mortgage interest rates are lower than when the time you engaged your loan or when you see a good promotional deal from a bank, highly consider refinancing your mortgage. If you grab a lower interest rate refinancing, it means savings for you or the possibility of fast-tracking your loan payments. While a promotional offer from a bank, aside from low interests, can also mean discounts and added value off your mortgage.

By refinancing your mortgage, you will also have the opportunity to change your mortgage payment terms, which could be helpful to speed up your payments. Know more value of refinancing your mortgage in this article, “10 Good Reasons to Refinance Your Mortgage”.

4. Be Frugal

Owning a mortgage is financial accountability and being good at it takes you to be more aware of your finances and being responsible in your spending. Mortgage payment should be your priority or any credit for that matter. And spending, on the other hand, should be managed at good limits.

It doesn’t mean you won’t spend, there are of course important things you need to place money on, especially your dailies and regular expenses. Spend on your necessities but cutback on wants. Learn to delineate things you need and things you want, you got this!

Remember the wiser you get with your spending, the more money you can save to pay off your mortgage sooner.

5. Stay Motivated

Keep up that high-spirited attitude when you first get hold of your dream home. That positive attitude when you sealed the deal on your mortgage.

It is so easy to lose motivation when you are on the road to paying off your mortgage loan, especially when finances are limited. When that happens you start to go astray with your dreams and also with payments.

Celebrate those small victories of your payment milestones. Because by those small steps you get closer to paying off your loan. Hurdles will always be along the way and they can be really tough sometimes, but knowing your goals and staying committed will help accomplish them.


As you can see, there are many options available to help you become mortgage-free faster. As always, consult with your mortgage broker and other financial advisors to help you evaluate your personal situation to determine what’s best for you.

Doable Ways to Becoming Mortgage-Free, Mortgage Broker in Greater Toronto Area, Canada

Daisy Raouph, CLU, CHS, specializes in mortgage financing solutions and financial services. A Mortgage Broker and Financial Security Advisor with over 30 years of experience in financial services. Contact us today to review your mortgage financing options. We can help!