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mortgage

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Pay more toward the principal on your mortgage to pay it off faster. This will save on the interest paid over the life of the loan.

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Re: mortgage

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It is always good to pay off the debts early. But, while paying off your mortgage early, keep these points in mind.

1. Throwing in an extra $500 or $1,000 every month won’t necessarily help you pay off your mortgage more quickly. Unless you specify that the additional money you’re paying is meant to be applied to your principal balance, the lender may use it to pay down interest in the next scheduled payment.

If you’re writing separate checks for extra principal payments, you can make a note of that on the memo line.

2. When you prepay your mortgage, you’re essentially costing the lender money. That’s why some lenders try to make up for lost profits by charging a prepayment penalty. But, we can see some brokers offering the least mortgage penalties in Canada.

3. Refinancing can save you money on interest. But in some cases, it could cost you more in the long run, especially if you’re planning to extend your loan term.

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