How to Pay Less Interest on Your Mortgage
Hate having a big mortgage? Join the club. Canadians want to get out of debt, but according to the Canadian Association of Accredited Mortgage Professionals, 75 per cent of Canadian borrowers failed to make any type of extra payment on their mortgages. Remember that you can save yourself a lot of money by limiting the amount you spend on interest. Use these strategies to keep your mortgage interest payments low:
Make as large a down payment as you comfortably can. The larger your down payment, the smaller your loan (principal), and the less interest you’ll have to pay.
Arrange to pay back the loan as quickly as possible. The longer the amortization period, the life of the loan, the more interest you will pay.
Commit to making weekly or biweekly payments. This will allow you to pay off the principal more quickly and therefore pay less interest on it.