Tag Archives: pre-payment privilege

The Miracle of Compound Interest Can Make You Rich

The miracle of compound interest can make you rich.  A house is the biggest asset you will own in your lifetime.  If you pay off your mortgage quickly using the miracle of compound interest, then you will be privileged with an impressive net worth. Take the example of Penny Morepayment.  If Penny buys her first home for $375,000 at the age of 30 and takes out a mortgage of $300,000, … Read More

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Increase Your Mortgage Payments

Paying off your mortgage is a common goal for homeowners.  The monthly obligation of mortgage payments is usually a family’s biggest financial burden, and the sooner it’s gone the better.  Getting rid of your mortgage is a little like pulling off a Band-Aid.  You can minimize your mortgage payments today and make your cash flow as comfortable as possible or you can put everything you have towards your mortgage to … Read More

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Know Your Reasons Why!

We all have goals in life.  Some we write down, others we keep at the back of our mind.  Nonetheless, we all have a future vision to which we aspire.  Whether, it’s to lead a healthier life, to meet the love of your life, to travel to an exotic locale or to simply pay off that darn mortgage, if it’s important enough to you, you will achieve it. Achieving your … Read More

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Debt Can Dampen your Love Life

The government of Canada has taken a keen interest on your debt levels, and so has that cutie down the hall.  High levels of consumer debt can lead to financial instability especially if interest rates rise or employment is lost.  The government wants to ensure the country’s economic stability, but that cutie is looking for some stability of their own.  According to a new survey by dating site Match.com, 94 … 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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Mortgage Rate vs. Mortgage Service

When shopping for a mortgage, the first thing borrowers looks for (and sometimes the only thing) is the best mortgage rate.  While mortgage rate is undeniably the single most important factor in choosing a mortgage, other factors could overwhelmingly make a low rate mortgage a bad choice.  Some of you may be thinking, “What other factors?” Other factors will rank in priority according to an individual’s circumstances, but they’ll affect … Read More

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How to Pay Off a Mortgage in 10 Years

Debt loads in Canada are at all-time highs and nearing the peak levels reached in the US before their meltdown.  Although there’s been a lot of debate over the seriousness of the statistics and what steps should be taken, there is no question that each of us would like less debt.  Banks have been asking for tighter lending rules and Ottawa has been telling the banks to manage their own … Read More

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