Save Money: Pay Down Your Mortgage
Wednesday Jul 10th, 2019Share
Today’s interest rates are still at an all-time low, which gives you several great opportunities. For current homeowners, paying down mortgage debt is more beneficial than ever with the low interest rates we are continuing to enjoy. My advice to homeowners is to take advantage of paying down 'the principal' of your mortgage, which can be up to 20% twice a year depending on how the mortgage is structured.
Another option to consider is to refinance your current mortgage to take advantage of the current low interest climate. Sometimes paying the penalty to refinance an existing mortgage can be offset over the long term by refinancing and it actually saves you money. I recommend reaping the monetary rewards earned by paying down principal mortgage debt or refinancing an existing mortgage. I work closely with mortgage brokers who help keep my clients in the loop and updated about any opportunities as they arise or are on the horizon.
For those looking to break into the real estate market, now is the time to invest in a residential home or condo, especially if the predictions by the financial institutions and economists are correct. First time buyers should consider purchasing a home or condo now to take advantage of these low interest rates. Sales are at an all time high with so little inventory and so many buyers. Because of low supply and huge demand, housing prices continue to climb, and the low interest rates currently offered will help with affordability and financing options.
Many Canadians took on short and long term mortgages when the Bank of Canada changed its overnight lending rate nearly 7 years ago. With some five-year fixed mortgages at 2.39%, it can be a hard selling point to convince homeowners to pay down debt. But I strongly believe that it is financially astute to consider topping up your payment, even by a small amount, which can take years off your mortgage and save you thousands of dollars in interest.