If you are looking to buy a Halifax home, you may already be looking ahead at the big picture; how to pay off your new mortgage as quickly as possible. Last week we explained how paying off your mortgage as quickly as possible will benefit you in the long run.
You can dramatically lower the interest that you will pay throughout the life of your mortgage simply by paying more on your principal in the first few years.
Here are some ways to make that happen without breaking the bank:
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Round your monthly payments up to the next nearest dollar or an even amount you can afford. By rounding say to even $10 more per payment, the extra money will rarely be noticed but the amount of interest you will save over the life of your Halifax mortgage will definitely be noticed.
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Use the double-up privileges as often as you can. You can skip-a-payment only when absolutely necessary.
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If it's possible sometime during the year, make a lump sum payment. This will decrease the principal on your mortgage so your payments will be allocated less to interest, making the end of your mortgage seem more attainable.
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Although mortgage rates may fall, keep your payments the same. If your payment hasn't been a problem in the past, keeping it the same will not affect you but will pay down faster on the principal.
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If your income increases, so should your mortgage payments. The extra "play money" may be fun to spend on those short-term luxury items, but the long term benefits of being mortgage-free will truly pay off in the end.
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