Paying Down Your Mortgage

We can help you pay down your mortgage faster

You might be amazed at how much you can save over time by paying a little extra now. Here are some smart ideas to help you reduce your debt:

  1. Increase your monthly payments up to double your repayment amount.*
  2. Pay an additional lump sum amount off the principal annually.*
  3. Pay your mortgage more frequently; weekly, bi-weekly, or semi-monthly installments are available
*Additional allowable repayments are to a maximum value of 20% of the original amount of the mortgage each calendar year

Example: reducing your amortization period

Amortization is the number of years it will take to pay off your mortgage. A shorter amortization period means you pay less interest over the life of the mortgage.

Amortization Period Monthly Payment Total Interest Cost*
25 years $670 $100,870
20 years $740 $77,720
15 years $866 $55,949

Based on a $100,000 mortgage at 6.50%, assuming a constant interest rate throughout the amortization period.

An Alterna Savings homebuying specialist can help you choose the right strategy to save a great deal of money and pay down your mortgage faster than you expected.

Are current mortgage rates below what you’re currently paying?

Or, do you have equity in your home that you’d like to leverage in order to reduce some of your debt load? If so, refinancing may be a good option to consider.

This checklist will help you prepare for meeting with your Alterna mortgage representative, plus give you an idea of additional costs that may be associated with refinancing.

* Over the life of the mortgage.