For many Canadians, paying off a mortgage is a major financial commitment. With the cost of housing rising steadily and interest rates on the rise, it can be a challenge to manage the cost of a mortgage. But there are strategies that can help you reduce the cost of your mortgage and make it more manageable.
1. Make a larger down payment: Putting down a larger down payment on your mortgage can help reduce the total amount of money you borrow and, in turn, reduce the amount of interest you pay over the life of the loan.
2. Make bi-weekly payments: Making bi-weekly payments is a great way to reduce the overall cost of your mortgage. By making bi-weekly payments, you’ll pay off your loan faster and reduce the amount of interest you’ll pay over the life of the loan.
3. Choose a shorter amortization period: By reducing the amortization period on your mortgage, you can reduce the total amount of interest you’ll pay over the life of the loan. A shorter amortization period can also help you pay off your mortgage more quickly.
4. Refinance your mortgage: Refinancing your mortgage can help you reduce the total cost of your loan. By refinancing, you can take advantage of lower interest rates and switch from a fixed-rate to a variable-rate mortgage. Refinancing can also help you pay off your loan faster and reduce the amount of interest you’ll pay over the life of the loan.
5. Make lump-sum payments: Making lump-sum payments on your mortgage can help reduce the total amount of interest you’ll pay over the life of the loan. By making a lump-sum payment, you can reduce your total loan amount and reduce the amount of interest you’ll pay over the life of the loan.
By following these strategies, you can reduce the cost of your mortgage and make it more manageable. With careful planning and the right strategies in place, you can make your mortgage more manageable and save money in the long run.
