July 22, 2023

How to Pay Off Your Mortgage Early: Strategies for Accelerated Repayment

How to Pay Off Your Mortgage Early: Strategies for Accelerated Repayment

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Manzeel Patel

Manzeel Patel

Mortgage Broker, LIC M11002628, Level #2

Manzeel is an award-winning Mortgage Broker and the Owner of the Toronto-based mortgage, Everything Mortgages. With 16 years of experience in the Canadian mortgage industry and a formal background in mortgage underwriting, Manzeel’s lending expertise gives him unique insight into whether a deal is feasible which empowers his clients to make more informed lending decisions faster. He has been recognized as one of Canada’s Top 10 Mortgage Brokers by the national Canadian Mortgage Professionals (CMP) Association. Him and his team of 18 mortgage agents are proud to offer a mortgage experience that's built on honesty, trust, and integrity. He prides himself on the brokerage’s dedication to deliver an excellent client experience throughout the entire home loan process from pre-approval to post-funding. Since moving to Toronto in 1998, Manzeel has successfully launched and scaled several businesses from the ground up, ranging from a mortgage brokerage and a vast real estate investment portfolio to a private financing eCommerce platform. He continues to be a leader in the real estate industry as he uses his analytical expertise to seek new real estate investment opportunities. As a tech junkie and avid sports enthusiast, when Manzeel’s not working with clients, you can find him  reading technology blogs, playing squash or watching tennis with his two boys.

307-18 Wynford Drive,
North York ON, M3C 3S2

manzeel@everythingmortgages.ca

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Most homeowners don’t keep their 30-year loan for the full term. On average, homeowners stay in their home for about 13 years. If you’re one of the homeowners planning to stay put for the long haul, you might start feeling the weight of those 30 years of interest payments. This may trigger thoughts about paying off your mortgage faster, living debt-free, and owning your home outright.

Refinance to a shorter term:

One of the most popular methods is to refinance your loan to a shorter term. By swapping your 30-year home loan with a 15, 20, or 25-year loan, you’ll make higher monthly payments, but your total interest over the life of the loan will be significantly less

Make extra principal payments:

Another effective strategy is to make extra payments towards your principal whenever possible. This will reduce your loan’s balance and its lifespan, saving you a considerable amount in interest.

Financial Planning: Knowing your trigger rate can aid in long-term financial planning. If you’re aware that a significant increase in prime rates could push your mortgage into the trigger rate territory, you might opt to set aside extra funds or seek other financial solutions.

Make one extra mortgage payment per year:

This could be as simple as making half your mortgage payment every two weeks, known as bi-weekly payments. Alternatively, you could make a 13th payment at the end of the year. Both approaches help you pay off your mortgage early.

Recast your mortgage:

 Recasting involves making a lump sum payment toward your principal, leading your bank to adjust your payoff schedule to reflect the new balance. The result? A shorter loan term and lower total interest paid.

Reduce your balance with a lump-sum payment:

If you come into a windfall, whether through inheritance, a bonus, or selling another property, you could use these funds to make a lump-sum payment toward your mortgage principal.

Remember, these strategies aren’t for everyone. It’s essential to carefully weigh your financial situation, the current mortgage rates, and your long-term financial goals before making a decision.

Potential Drawbacks:

While paying off your mortgage early can free up cash for other uses, there can be drawbacks. For example, you might earn more by investing extra money in the stock market, given its historical average 10% annual return. Also, you may be able to deduct mortgage interest payments on your taxes, effectively getting some of that money back. Plus, using all your extra funds to pay down a mortgage might tie up too much of your net worth in your home.


At Everything Mortgages, we strive to help first-time homebuyers, small business owners, and hardworking professionals navigate their mortgage journeys. Whether it’s securing a loan or seeking better solutions, our team is here to guide you toward becoming mortgage-free sooner and building wealth faster. Reach out to us today to explore these strategies and more.

Note: This article is intended for informational purposes only and does not constitute financial advice. Please consult a financial advisor or mortgage professional before making decisions about your mortgage.


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