Go to the Globe and Mail homepage

Jump to main navigationJump to main content



How to cut your mortgage costs Add to ...

Whatever type of mortgage you choose, try to pay it down as quickly as possible. That way, you'll pay less interest and cut your mortgage costs.

When you apply for a mortgage

  • Make the largest down payment you can.
  • Pick the shortest amortization period you can afford.
  • Pick an accelerated bi-weekly payment option. This works out to 13 monthly payments each year.
  • Shop around for the best deal you can get.

3 ways to pay down your mortgage more quickly

More Related to this Story

  1. Increase the amount of your payments.
  2. Make a lump-sum payment each year (prepayment) in addition to your regular payments. For example, apply any tax refund or bonus to your mortgage.
  3. Keep your payment the same if you renew at a lower interest rate.

Use this calculator to figure out how much money and how many years you can save by making prepayments.

Consider penalties for leaving early: If you plan to exit your mortgage before the end of your term, find out the penalty you may pay. Learn how this penalty is calculated.

Special features

Only choose the special features you need, like:

  • Mortgage insurance – Covers your mortgage payments if you lose your job.
  • Portability – Carry your mortgage with you when you sell your home and buy another one.
  • Prepayment options – Make extra lump sum payments.
  • An assumable mortgage – The buyer of your home can take over your mortgage.

Don’t just compare rates and features when you go mortgage shopping. Also consider penalties and fees. For example, look at mortgage prepayment penalties. Lenders must calculate and disclose these in a standardized way.

Content in this section is provided in partnership with Investor Education Fund, a non-profit organization founded and supported by the Ontario Securities Commission that provides unbiased and independent financial tools to help Canadians make better money decisions. To find out more, go to: GetSmarterAboutMoney.ca


In the know

Most popular videos »


More from The Globe and Mail

Most popular