How to be mortgage-free within 10 years?

Submitted by Jasmina on Sun, 2007-02-11 22:08.

New Homes & Condos - GTA MagazineMortgage advisor Calum Ross shares with you the tips how you can be mortgage-free as quickly as possible:

  1. Never get an open mortgage at a fixed rate unless you plan on paying it off during the term. Today's closed mortgages generally offer 10 to 20 per cent prepayment privileges, and can usually be obtained at one per cent or more off the posted rate.
  2. Use accelerated weekly, or bi-weekly payments.
  3. Give your mortgage the same raise as you get each year.
  4. Give your mortgage a portion of any bonus or extra income.
  5. Keep your payments the same even if you renew at a lower rate.
  6. Use your income tax return to put a lump sum payment towards your mortgage.
  7. Use extra money from your budget.
  8. Round up your mortgage payments.
  9. Consider a variable rate mortgage - those who can endure the rate adjustments save money over time.
  10. Seek independent financial advice. While some bankers do look out for your best interest, they work for the bank and not you.

Read the full story in January issue of New Homes & Condos - GTA Magazine.