Tag Archives: pay-off mortgage

Pennies Stop Shipping Today

As of today the Royal Canadian Mint stopped shipping pennies to retail stores and banks.  The death of the penny was announced nearly a year ago in the federal budget.  The Mint actually stopped producing the penny last May, but it wasn’t until today that the supply actually stopped. The federal government has given retailers flexibility in their rounding calculations, but has provided guidelines that the majority of retailers will … Read More

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5 Steps to Pay-Off Your Mortgage Sooner

Owning your own home is a fundamental dream for Canadians, but with a large mortgage looming it can feel like the bank is the real owner.  Owning your home free and clear is a more ambitious goal.  Here are 5 steps to get to that mortgage burning party sooner. 1)      Set a Realistic Timeline – It’s important to set an ambition goal, but make sure it’s achievable.  Just saying that … Read More

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Hidden Mortgage Fees

  If you’re like most borrowers you just want the best mortgage rate.  After all, aren’t the other terms the same?  Wrong. Banks and other mortgage lenders are businesses looking to maximize their profits and although there are regulations on stating fixed mortgage rates, the other terms are fair game and buyer beware. One example of a hidden fee is the reinvestment fee. This is similar to a restocking fee … Read More

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Meditate Your Mortgage Away

I bet you never thought you’d see meditate and mortgage in the same sentence together.  Mortgages are serious financial vehicles designed to help Canadians achieve home ownership sooner while meditation is reserved for crossed legged guru’s sitting on Tibetan mountain tops.  Not!  Meditation has become a mainstream method for Canadians of all religious backgrounds to unwind, solve inner-conflicts and achieve a greater state of happiness. The key to a successful … Read More

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15 Years to Mortgage Freedom

On average Canadians have 15 years left to pay off their mortgage.  This is the findings of a survey released yesterday, conducted by Leger Marketing, for BMO Bank of Montreal.  It’s difficult to distil any meaning from an average of the entire Canadian population, but thankfully the survey breaks down its findings by province and by 5 year amortization increments.  Here are a summary of the results. Years Left on                                                   … Read More

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Mortgage Penalty Loophole

Mortgage penalties are a fact of life for mortgage holders. When it comes time to sell your house or refinance your mortgage you’ll rarely find yourself near your renewal date.  Mortgage penalties are not always a bad thing though.  They can be associated with the better option, especially if you are breaking your term to get a better mortgage rate. After all, it’s about saving money over the life of … Read More

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Eliminate Your Mortgage Sooner

Mortgage pre-payment privileges not only allow you to make annual lump sum payments, they also allow you to increase the amount of your mortgage payment each year.  These pre-payment privileges are usually described as 15% + 15% or 20% + 20%.  The greater the percentage the more you are allowed to increase your regular payments.  There are two numbers given because the first is the annual lump sum percentage and … Read More

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Is Your Mortgage Prepayment Privilege 20/20?

Mortgage pre-payment privileges are an important component of any mortgage, but they are often confusing and misunderstood.  A major challenge is that although each mortgage company is familiar with their mortgage terms they are unclear with the rest of the market and how they compare.  In an effort to simplify their meaning mortgage lenders will advertise terms like 15% / 15% or 20% + 20%.  If these terms meant the … Read More

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BMO’s Mortgage Spin Doctors at Work

It’s amazing how a little spin can turn a constraint into a marketing tool.  Bank of Montreal’s (BMO’s) “Low Rate Mortgage” comes with some fine print, and one of the least offensive of these is a maximum amortization of 25 years.  Most other mortgages offer the flexibility to go to 30 years, although you have the choice to set it much lower if you want.  Not a big deal, but … Read More

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Monthly or Bi-Weekly Mortgage Payments?

So you’ve been approved for your mortgage, and have chosen your term and amortization.  Now it’s time to pick your payment frequency; monthly, semi-monthly, weekly or bi-weekly.  Most people are aware that there are advantages to paying your mortgage on a bi-weekly basis, but aren’t quite sure why. One perception is that by paying bi-weekly you are making more frequent payments so less interest will accumulate.  While this is true, … Read More

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