Mortgage Free Faster

Marci • March 11, 2013

Owning a home is one of the cornerstones a financial plan. However, making mortgage payments for 20 to 30 years can take a huge bite out of your budget, even with low interest rates.

A $300,000 mortgage at 3.29 per cent, amortized over 30 years will cost $161,300 in interest. That is if you keep it for the 30 years and our goals is to try to make it end much earlier.

 

There are 3 easy ways to start taking the years off:

 

1. Make a lump sum payment

A lump sum payment reduces your outstanding principal.  The sooner you can make a prepayment, the less interest you’ll pay over the long term. Your mortgage contract will state how much pre-payment you are allowed to make without penalty. Most are 15-25% of the original mortgage amount and you can pay this annually.

 

Coming up with a large lump sum – up to $75,000 on a $300,000 mortgage – is huge and most people cannot do this annually. Even a small sum   can reduce your overall interest amount.

 

2. Increase the amount of your payments

Paying an extra $100 a month on a $300,000 mortgage at 3.29 per cent over 30 years will save you more than $11,000 in interest and reduce the amortization by 3 1/2 years. If $100 is too much, just start with $25 and work your way up.  Check your mortgage contract to see if there are rules about how often you can increase your payments without paying a fee.

 

3. Make more frequent payments

Financial institutions offer a number of payment options. The standard ones are:  monthly, semi-monthly, bi-weekly and weekly. I recommend that you line your payments up with the way you get paid.

 

If you decide to make more frequent payments, make sure you choose an accelerated option.  Accelerated weekly and bi-weekly payments can save you thousands because you’ll make the equivalent of one extra monthly payment each year.  If you do not get paid bi-weekly, I have found that you should not do bi-weekly since it is really easy to miss a payment.

 

There is very little extra savings if you just switch to a more frequent payment without taking the “accelerated” option.

 

On the same $300,000 mortgage as above, a bi-weekly payment will save $289 in interest over the life of the mortgage. On the other hand, with an accelerated bi-weekly payment (an extra $50 per payment) you’ll save more than $18,000 over the life of the mortgage.

 

You can save thousands in interest by paying off your mortgage as fast as your budget allows.  Choose any one, all, or a combination of the prepayment options available to you. Contact your mortgage broker to review your budget and to figure out your mortgage plan, then check with your lender to verify your pre-payment options and any penalties or fees you may be required to pay.

Contributed by: Gina Knows Best www.ginaknowsbest.com

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Collateral vs. Standard Mortgage: Pros and Cons Explained

By Marci Deane • June 17, 2026
Mortgage Registration 101: What You Need to Know About Standard vs. Collateral Charges When you’re setting up a mortgage, it’s easy to focus on the rate and monthly payment—but what about how your mortgage is registered? Most borrowers don’t realize this, but there are two common ways your lender can register your mortgage: as a standard charge or a collateral charge . And that choice can affect your flexibility, future borrowing power, and even your ability to switch lenders. Let’s break down what each option means—without the legal jargon. What Is a Standard Charge Mortgage? Think of this as the “traditional” mortgage. With a standard charge, your lender registers exactly what you’ve borrowed on the property title. Nothing more. Nothing hidden. Just the principal amount of your mortgage. Here’s why that matters: When your mortgage term is up, you can usually switch to another lender easily —often without legal fees, as long as your terms stay the same. If you want to borrow more money down the line (for example, for renovations or debt consolidation), you’ll need to requalify and break your current mortgage , which can come with penalties and legal costs. It’s straightforward, transparent, and offers more freedom to shop around at renewal time. What Is a Collateral Charge Mortgage? This is a more flexible—but also more complex—type of mortgage registration. Instead of registering just the amount you borrow, a collateral charge mortgage registers for a higher amount , often up to 100%–125% of your home’s value . Why? To allow you to borrow additional funds in the future without redoing your mortgage. Here’s the upside: If your home’s value goes up or you need access to funds, a collateral charge mortgage may let you re-borrow more easily (if you qualify). It can bundle other credit products—like a line of credit or personal loan—into one master agreement. But there are trade-offs: You can’t switch lenders at renewal without hiring a lawyer and paying legal fees to discharge the mortgage. It may limit your ability to get a second mortgage with another lender because the original lender is registered for a higher amount than you actually owe. Which One Should You Choose? The answer depends on what matters more to you: flexibility in future borrowing , or freedom to shop around for better rates at renewal. Why Talk to a Mortgage Broker? This kind of decision shouldn’t be made by default—or by what a single lender offers. An independent mortgage professional can help you: Understand how your mortgage is registered (most people never ask!) Compare lenders that offer both options Make sure your mortgage aligns with your future goals—not just today’s needs We look at your full financial picture and explain the fine print so you can move forward with confidence—not surprises. Have questions? Let’s talk. Whether you’re renewing, refinancing, or buying for the first time, I’m here to help you make smart, informed choices about your mortgage. No pressure—just answers.

Bank of Canada Holds Rate at 2.25% — June 10, 2026

By Marci Deane • June 10, 2026
The Bank of Canada announced today that it is maintaining its target for the overnight rate at 2.25%, with the Bank Rate at 2.5% and the deposit rate at 2.20%. For Canadian homeowners, buyers, and anyone with a mortgage on the horizon — here's what you need to know.

First-Time Buyer? Here’s How to Tell If You’re Ready

By Marci Deane • June 3, 2026
Ready to Buy Your First Home? Here’s How to Know for Sure Buying your first home is exciting—but it’s also a major financial decision. So how can you tell if you’re truly ready to take that leap into homeownership? Whether you’re confident or still unsure, these four signs are solid indicators that you’re on the right path: 1. You’ve Got Your Down Payment and Closing Costs in Place To purchase a home in Canada, you’ll need at least 5% of the purchase price as a down payment. In addition, plan for around 1.5% to 2% of the home’s value to cover closing costs like legal fees, insurance, and adjustments. If you’ve managed to save this on your own, that’s a great sign of financial discipline. If you're receiving help from a family member through a gifted down payment , that works too—as long as the paperwork is in order. Either way, having these funds ready shows you’re prepared for the upfront costs of homeownership. 2. Your Credit Profile Tells a Good Story Lenders want to know how you manage debt. Before they approve you for a mortgage, they’ll review your credit history. What they typically like to see: At least two active credit accounts (trade lines) , like a credit card or loan Each with a minimum limit of $2,000 Open and active for at least 2 years Even if your credit isn’t perfect, don’t panic. There may still be options, such as using a co-signer or working on a credit improvement plan with a mortgage expert. 3. Your Income Can Support Homeownership—Comfortably A steady income is essential, but not all income is treated equally. If you’re full-time and past probation , you’re in a strong position. If you’re self-employed, on contract, or rely on variable income like tips or commissions, you’ll generally need a two-year history to qualify. A general rule: housing costs (mortgage, taxes, utilities) should stay under 35% of your gross monthly income . That leaves plenty of room for other living expenses, savings, and—yes—some fun too. 4. You’ve Talked to a Mortgage Professional Let’s be real—there’s a lot of info out there about buying a home. Google searches and TikToks can only take you so far. If you're serious about buying, speaking with a mortgage professional is the most effective next step. Why? Because you'll: Get pre-approved (and know what price range you're working with) Understand your loan options and the qualification process Build a game plan that suits your timeline and financial goals The Bottom Line: Being “ready” to buy a home isn’t just about how much you want it—it’s about being financially prepared, credit-ready, and backed by expert advice. If you’re thinking about homeownership, let’s chat. I’d love to help you understand your options, crunch the numbers, and build a plan that gets you confidently across the finish line—keys in hand.