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Written on September 21st, 2017

Paying down your mortgage faster

For most people with a mortgage, the goal is to become mortgage free as quickly as possible.

First National offers several prepayment privileges depending on the mortgage product you have selected that can help you save on interest costs and pay down your mortgage more quickly.

 

Prepayment privileges include:

  • Annual 15% lump sum: Every year* you can pay up to 15% of your original mortgage balance on any regular payment date. The payment applies directly to your principal. Minimum prepayment amount is $100.
  • Annual 15% payment increase: Once per year* you can increase your payment amount by up to 15%. The payment applies directly to your principal. Not available for adjustable rate customers.
  • Double up: You can double up your payment of principal and interest on any regular payment date. The payment applies directly to your principal.
    Example of using all three options above: Monthly mortgage payment of $1000.  Client could take advantage of 15% payment to increase mortgage payment to $1150.  Client could then double that payment to $2300.  This still hasn’t even taken into account the client’s 15% ANNUAL LUMP SUM amount!
  • Payment frequency: You can change your payment frequency once every 12 months during the mortgage term, free of charge, to manage your budget more effectively and save money.
  • Payment date changes: You can change your mortgage payment date once every 12 months during the mortgage term to better align with your pay periods.
    *A year begins and ends with the date your mortgage was first advanced or renewed.