Explore Your Prepayment Options & Be Mortgage Free Sooner

Majority of lenders will have prepayment options that allow for contributions in addition to regularly scheduled mortgage payments. Here are the most common ones:

Annual Lump Sum Payment:

  • A lump sum of 10- 20% of the original mortgage amounts each year
  • Applied directly to the principal balance.
  • Minimum payment amount: Usually $100.
  • Some lenders only allow a lump sum payment on the mortgage anniversary date.

Payment Increase:

  • Most lenders will allow an increase of the regular payment by up to 10-20% once per year.
  • Increased amount reduces the principal balance.

Double-Up Payment:

  • Make two regular mortgage payments on the same date.
  • Can be done on any or all payment dates during your mortgage term.
  • Extra payment directly reduces your principle.

Accelerated Payment:

  • Pay 13 months of payments in 12 months.
  • Increase each mortgage payment slightly throughout the year.
  • Speeds up the process of paying down your principal faster.

A small change can go a long way and greatly reduce your amortization. Look into your lenders’ prepayment options so you can be mortgage free sooner.

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About Atrina Kouroshnia

Atrina Kouroshnia is an independent, licensed, mortgage broker in the province of British Columbia. She has a degree in Human Relations & Commerce, and past work experiences in HR & Real Estate Development. She comes to the table with great customer service and problem-solving skills. Her approach to finding the best mortgage solution involves both short and long-term planning, making sure her clients are in a suitable mortgage that is flexible to their needs.