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Good News from your Local Mortgage Broker!

posted Mar 16, 2016, 6:35 AM by Wise Move Realty Inc. Brokerage

Good news! It may only take small changes for you to become mortgage free and save thousands of dollars in interest in the process. In December, Mortgage Professionals Canada released its annual state of the housing market report and found that, on 2015, 36% of homeowners took actions to reduce their mortgage debt.

While many homeowners think in terms of lump-sum payments, which are a great option, there are other ways to save money and pay down that debt including the following:
• Refinancing for a lower interest rate
• Renegotiating for a lower interest rate
• Switching to accelerated bi-weekly payments 
• Increasing amount of regular payments
• Lump-sum payments

According to the report about 950,000 mortgage holders voluntarily increased their regular payments during the past year. The average amount of increase was about $340 per month, for a total of almost $4 billion per year. In addition, voluntary increases that were made in prior years continue to contribute to accelerated repayment of mortgages. Increasing your payment by just $20 a month can have a positive impact simply because the extra money is applied directly against the mortgage principal. This decreases the amount of interest you will pay over the life of the loan

Information provided by Paul Burnham, The Mortgage Group