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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Smart Strategies to Save for Your Down Payment

By Marci Deane • March 25, 2026
How to Start Saving for a Down Payment (Without Overhauling Your Life) Let’s face it—saving money isn’t always easy. Life is expensive, and setting aside extra cash takes discipline and a clear plan. Whether your goal is to buy your first home or make a move to something new, building up a down payment is one of the biggest financial hurdles. The good news? You don’t have to do it alone—and it might be simpler than you think. Step 1: Know Your Numbers Before you can start saving, you need to know where you stand. That means getting clear on two things: how much money you bring in and how much of it is going out. Figure out your monthly income. Use your net (after-tax) income, not your gross. If you’re self-employed or your income fluctuates, take an average over the last few months. Don’t forget to include occasional income like tax returns, bonuses, or government benefits. Track your spending. Go through your last 2–3 months of bank and credit card statements. List out your regular bills (rent, phone, groceries), then your extras (dining out, subscriptions, impulse buys). You might be surprised where your money’s going. This part isn’t always fun—but it’s empowering. You can’t change what you don’t see. Step 2: Create a Plan That Works for You Once you have the full picture, it’s time to make a plan. The basic formula for saving is simple: Spend less than you earn. Save the difference. But in real life, it’s more about small adjustments than major sacrifices. Cut what doesn’t matter. Cancel unused subscriptions or set a dining-out limit. Automate your savings. Set up a separate “down payment” account and auto-transfer money on payday—even if it’s just $50. Find ways to boost your income. Can you pick up a side job, sell unused stuff, or ask for a raise? Consistency matters more than big chunks. Start small and build momentum. Step 3: Think Bigger Than Just Saving A lot of people assume saving for a down payment is the first—and only—step toward buying a home. But there’s more to it. When you apply for a mortgage, lenders look at: Your income Your debt Your credit score Your down payment That means even while you’re saving, you can (and should) be doing things like: Building your credit score Paying down high-interest debt Gathering documents for pre-approval That’s where we come in. Step 4: Get Advice Early Saving up for a home doesn’t have to be a solo mission. In fact, talking to a mortgage professional early in the process can help you avoid missteps and reach your goal faster. We can: Help you calculate how much you actually need to save Offer tips to strengthen your application while you save Explore alternate down payment options (like gifts or programs for first-time buyers) Build a step-by-step plan to get you mortgage-ready Ready to get serious about buying a home? We’d love to help you build a plan that fits your life—and your goals. Reach out anytime for a no-pressure conversation.

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