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Strategies for paying down your mortgage faster (#006)


If you knew you could reduce the principal on your mortgage payments, wouldn’t you like to know how it’s done? Would you like to eliminate your mortgage so your family can put that money towards a different goal? If you haven’t thought about how to shave off the time it will take you to pay off your home, then you risk losing a lot of money to interest payments.

How long it takes to pay off your mortgage determines how much money your family will spend on the interest. A shorter term on the loan means less money goes into the mortgage payment. Does this sound like the details of your mortgage?

If you’re interested in eliminating your mortgage payments, then you’ll want to invest about 10 minutes to listen to this edition of The Mortgage Newscast where your host Erik Reynolds interviews Jared Dreyer, accredited mortgage professional and President of Dreyer Group Mortgages, about strategies for paying down your mortgage, including reasons why the homeowner would benefit from paying down their mortgage, options that lenders have available to help, and other strategies to reduce the principal on your mortgage.

The interest amount of your mortgage payments contributes to the Canadian housing market. A Yahoo! Finance article reports, "Effective May 1, 2014 , Genworth Canada will increase its mortgage insurance premium rates by an average of 15 per cent." This interview offers tips for how to eliminate your mortgage to avoid paying a bundle in interest charges.

The Key to Paying Off the Principal Faster

Jared starts out by discussing some of the arguments for paying down mortgages, and how this benefits the home owner. The most primary reason is because when you pay your mortgage off faster, more money goes towards the principal, saving what you would otherwise pay to the bank in interest payments.

Next Jared applies RSPs to illustrate why homeowners need to focus on paying the principal down during the first five to seven years after buying their home. He also clarifies for listeners why this simple method could save money for them in the long term.

There are ways for you to pay down your mortgage using the methods Jared outlines in this short podcast, but it’s up to you to apply them to your house payments.

You Have Questions, Lenders Have Answers

Lenders have ways to help you pay off your home faster, but most homeowners have no idea they exist. Think about how this applies to your mortgage, and whether you could use the interest money for other things. Jared talks more about this in the podcast and also answers these questions:

  • How will it benefit me if I start making extra mortgage payments?
  • What are some ways lenders can help pay down mortgage faster?
  • Could an accelerated payment option affect my mortgage payments?

Now consider this. Could your family benefit from the money you save by paying off your entire mortgage early? Can your finances handle paying extra above the amount of your mortgage payment each month? If you answered yes to either of these, then it’s time to contact a lender to review your options.

The Time to Eliminate Your Mortgage Is Now

Next Jared shares details about the principal reduction strategy. This is a program that lenders have in place to help homebuyers pay off their mortgages much more quickly. He offers examples of the different possible rates and suggestions recommendations to help you completely eliminate your mortgage.

These types of programs that allow homebuyers to pay down their mortgage can offer solutions for saving extra money for retirement, college funds, or any other monetary goal. What’s preventing you from paying off your mortgage early?

The episode wraps up with Jared sharing some of the other ways you can eliminate your mortgage faster. He also advises listeners that there’s no time like the present to get started.

Are You Ready to Enjoy Financial Freedom?

Do you want to eliminate your mortgage so you can use the funds elsewhere? Are you having a hard time understanding how to make this dream a reality? Listen to the entire podcast now, and then share your questions or comments below to begin or join into a conversation.

After you finish listening to this informative podcast, please contact Dreyer Group Mortgage Brokers at 1.800.687.9020 or apply with us using our 30 Second Application. We look forward to hearing from you!

30 Second Mortgage Application:

Dreyer Group Mortgage Brokers
#308 – 15252 32nd Avenue
Surrey, BC
V3S 0R7

Phone #: (604) 536-3802

Email: This email address is being protected from spambots. You need JavaScript enabled to view it.

Twitter: @dreyermortgages