Ways to save on your mortgage

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Prepayment privileges 

Provided that all your payments are up to date, you can pay an additional 20% of your original mortgage amount once per calendar year. You can choose to:

  • Pay a lump sum of up to 20% of your original mortgage amount
  • Increase the amount of your regular monthly payments by up to 20%
  • Double your payments (the amount of your payment will be double the regular principal and interest payment; the extra will be put toward paying down your principal)

You can combine any of these privileges without incurring any prepayment charges as long as the prepayment amount does not exceed 20% of your original mortgage amount. 

Prepayment privileges are only available once per calendar year. Unused portions can’t be carried forward.

Using any of these prepayment privileges can significantly reduce your interest costs and the time it takes to pay down your mortgage.

For more information on prepayment privileges, please contact your branch.

Payment frequency

By changing your payment frequency, the amount you pay on a monthly basis changes very little, but it can result in big savings over the life of your mortgage.

Accelerated payments are a great way to save interest costs and reduce the time it takes to pay down your mortgage. These payment options are calculated by taking a monthly payment schedule and assuming only four weeks in a month.

Payment type How it's calculated Number of payments Benefit
Accelerated weekly Takes your normal monthly payment and divides it by four 52 weekly payments By the end of the year you will have paid the equivalent of one extra monthly payment
Accelerated bi-weekly Takes your normal monthly payment and divides it by two 26 bi-weekly payments By the end of the year you will have paid the equivalent of one extra monthly payment
 
These additional amounts accelerate your mortgage payoff by going directly against your mortgage's principal, saving you thousands of dollars in interest and taking years off your mortgage.
Example:
  • Victoria has a mortgage of $250,000 and regular monthly payments of $1,454.02
  • She is looking to pay down her mortgage faster so she switches to accelerated bi-weekly payments
  • Her new payment is $727.01 every two weeks, which totals $1,454.02 every four weeks
  • By changing her payments, Victoria will pay an additional $1454.02 on her mortgage each year, reducing the interest costs over the life of her mortgage by $31,302.68 and cutting over three and a half years off the life of her mortgage
Portability
You can transfer your existing interest rate, mortgage balance and maturity date to a new home with no prepayment charges on approval.
Blend and extend
You can take advantage of current rates if you are buying a new home, refinancing or renewing early with no prepayment charges. With a blend and extend mortgage, your new interest rate is determined by combining the current rate on the balance of funds in your existing mortgage and adding the new rate to additional funds you wish to add to your mortgage.