Paying off your mortgage early might sound like a dream — but for thousands of Canadians, it’s absolutely possible with the right strategy. In this 2025 guide, we’ll show you how to chip away at your mortgage faster and save big on interest.

Why Paying Off Your Mortgage Early Might Be the Smartest Financial Move You Make

Owning a home is a huge milestone—but being mortgage-free? That’s a whole different level of freedom.
Whether you’re just a few years into your mortgage or well into your amortization period, there’s a good chance you’ve wondered: “Is there a way to pay this off faster?”
The good news is: Yes, there is. In fact, there are several smart (and surprisingly doable) strategies that can help you knock years off your mortgage and save tens of thousands in interest.
This guide will walk you through everything—from choosing the right payment schedule to optimizing your mortgage renewal—to help you become debt-free faster.

What’s the Big Deal About Paying Off Your Mortgage Early?

Let’s be real. Your mortgage is likely your biggest monthly expense. Paying it off sooner can:

Free up your budget for things like savings, investments, travel, or even early retirement
Help you build equity faster (aka: real ownership in your home)
Save thousands—or even tens of thousands—in interest over time

Plus, there’s a powerful emotional benefit. Owning your home outright can give you peace of mind and a sense of financial security that’s hard to beat.

Choose the Right Payment Frequency

One of the simplest ways to chip away at your mortgage faster is to adjust how often you make payments. Let’s break it down:

Payment Type	# of Payments/Year	Time Saved	Interest Saved
Monthly	12	—	—
Semi-Monthly	24	0	~$1,090
Bi-Weekly	26	0	~$1,173
Accelerated Bi-Weekly	26 (extra payment/year)	~3 yrs, 9 months	~$76,852
Weekly	52	0	~$1,684
Accelerated Weekly	52 (extra payment/year)	~3 yrs, 10 months	~$77,743

📆 Payment Frequency: What’s the Smartest Choice?

Choosing how often you make your mortgage payments can have a big impact on total interest paid and how fast you pay off your home. Here’s how it breaks down on a $500,000 mortgage over 25 years at 5.00%:

📅 Frequency	Payment Amount	Total Interest Paid	Mortgage Paid Off In
Monthly	$2,908	$372,500	25 years
Biweekly	$1,454	$366,800	24.1 years
Accelerated Biweekly	$1,524	$350,200	22.6 years
Weekly	$727	$366,400	24.2 years
Accelerated Weekly	$762	$349,300	22.5 years

💡 Tip: Accelerated options help you make the equivalent of 13 monthly payments per year instead of 12 — which can cut years off your mortgage.

👉 Accelerated payment options give you the biggest bang for your buck—without feeling like a big sacrifice. You’re simply paying a bit more, more often, and that extra bit adds up fast.

Lump-Sum Payments: The Hidden Weapon

Did you get a tax refund, work bonus, inheritance, or some extra cash lying around? Throw it at your mortgage. Lump-sum payments go directly toward your principal and are one of the most powerful ways to reduce your interest costs.
Let’s say you make a $10,000 lump sum payment early in your mortgage. That could shave off a few years and reduce your total interest by thousands.
But watch out: most lenders set annual prepayment limits (often 10–20% of your original loan). Exceed that and you might face penalties. Always check your mortgage contract or ask your lender before making a big payment.

Bump Up Your Regular Payments (Even Just a Bit)

Let’s say your monthly mortgage payment is $1,378. Rounding that up to $1,450 might not feel like much—but over the years, that extra $72 per month could save you thousands in interest and knock years off your loan.
Better yet? Most lenders let you increase your regular payments up to a certain percentage (often 10–15%) annually without penalties.
Tip: If you recently got a raise or reduced other expenses, consider boosting your payment now while your budget can absorb it.

What About Renewals? Don’t Miss This Window

Your mortgage renewal is the perfect time to realign your goals and accelerate your mortgage payoff.
Here’s how to make the most of your renewal:

1. Find a Lower Interest Rate

Even a small drop in your interest rate can make a big difference. If you keep your monthly payments the same but get a lower rate, more of your money goes toward the principal.

Let’s say your current rate is 5.69%, but at renewal, you switch to 4.99%. By maintaining your existing payment, you’ll pay off your mortgage faster without even noticing a change in your budget.

2. Shorten Your Amortization

Let’s say you originally had a 25-year amortization. At renewal, you could switch to a 20- or 15-year plan. Yes, your payments will increase—but you’ll be mortgage-free much sooner and pay significantly less interest.
Just make sure your budget can handle the higher payment. No one wants to be mortgage-free but cash-strapped.

The Simple Tricks That Add Up Over Time

You don’t need a windfall to make a difference. These small changes can seriously accelerate your mortgage payoff:

Round up payments: Add an extra $20–$100 to every payment
Switch to accelerated payments: One extra monthly payment per year = huge savings
Make annual lump sum payments: Even $1,000 a year can have big impact
Apply tax refunds or bonuses directly to your mortgage

💰 How Small Extra Payments Add Up Over 10 Years

Even modest monthly prepayments can save you thousands in interest and shorten your mortgage term. Here’s how $100–$300 in monthly extras affect a $500,000 mortgage over 10 years at 5.00% interest:

💵 Monthly Extra	Total Paid Extra	Interest Saved	Mortgage Term Reduced By
$100	$12,000	$11,890	1.7 years
$200	$24,000	$23,300	3.2 years
$300	$36,000	$35,500	4.5 years

🔍 Example based on 25-year amortization, fixed rate of 5.00%, and no lump-sum prepayments. Actual results may vary by lender.

FAQs: What Every Homeowner Wants to Know

Q: Will paying off my mortgage early hurt my credit score?
Nope! In fact, it shows great financial responsibility. Just keep your other credit accounts active and in good standing to maintain a healthy score.
Q: Are there penalties for paying off your mortgage early?
Possibly. It depends on your mortgage terms. Closed mortgages typically have prepayment limits. Always check with your lender first.
Q: What are prepayment privileges?
These are lender-approved ways you can make extra payments—without penalties. This might include increasing your monthly payment, making lump-sum payments, or doubling up occasionally.
Q: How long do most Canadians take to pay off their mortgage?
Most go with a 25-year amortization, but with accelerated strategies, many shave off several years.

Mini Verdict: A Few Smart Moves Can Save You a Lifetime of Interest

Paying off your mortgage doesn’t mean living on instant noodles and skipping vacations. It just means being intentional about where your money goes.
With simple strategies—like switching to accelerated payments, rounding up your payments, or using your bonus wisely—you can chip away at your mortgage without feeling overwhelmed.
And when you finally make that last payment? There’s no better feeling.

Why Choose Mortgage.Expert?

We’re here to make the mortgage journey easier—and smarter.
At Mortgage.Expert, we go beyond just showing you rates. We help you understand your mortgage, optimize your payments, and create a plan that fits your life. Whether you’re buying, renewing, or refinancing, our trusted partners offer Canada’s best rates, flexible terms, and expert advice without the pressure.

Want to Own Your Home Sooner?

From extra payments to smarter terms, we’ll show you proven ways to pay off your mortgage faster — and save thousands in interest along the way. Start building real equity in 2025.
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