Mortgage Tools
Canadian Mortgages Inc. can Help You Choose the Right Mortgage Amortization Schedule
One very important decision you will have to make when purchasing a home or property is the mortgage amortization period for your loan, because it will help determine:
- The amount of your regular payments
- How quickly your mortgage will be paid off
- How much interest you will end up paying over the life of your mortgage
In real estate terminology, amortization means a reduction in the loan balance, so your mortgage amortization is the length of time it will take you to repay your lender by making equal payments at regular intervals. The accredited brokers at Canadian Mortgages Inc. can help you evaluate your budget, income, and lifestyle to determine the amortization period that will best suit your financial circumstances and goals.
How Amortization Affects Your Savings
The amortization schedule for any Canadian mortgage will generally range from 10 to 40 years. The longer your mortgage amortization, the more interest you will owe your lender. However, with a longer amortization period, your regular mortgage payments will be significantly lower, meaning you will have more disposable income. On the other hand, while a shorter mortgage amortization will mean higher regular payments, more of that money will pay down the principal, and you could end up saving hundreds of thousands of dollars in interest charges.
How You can Shorten Your Mortgage Amortization Period
Aside from choosing a shorter mortgage amortization, you can also drastically reduce your amortization schedule simply by:
- Making regular weekly payments
- Making regular bi-weekly payments
- Taking advantage of lump sum payments
By making weekly or bi-weekly payments, you will make more payments per year than with monthly, quarterly, or semi-annual payments, and consequently pay off more of your principal each year.
Many of the lenders we are partnered with at CMI allow an annual lump-sum payment, which is a once-a-year mortgage payment that is as high as 20% of your original mortgage that will pay down your principal directly. Just by making weekly, bi-weekly, or annual lump-sum payments, you can actually shave years off your mortgage amortization.
Mortgage Amortization and the CMI Advantage
At Canadian Mortgages Inc., we have decades of experience with mortgage amortization and helping clients find suitable repayment plans. We are an independent mortgage company, and our accredited and objective brokers have access to hundreds of traditional and non-traditional lenders that compete for the business of our clients, which means you will get the most options and flexibility with your mortgage products.
To ensure you get the most affordable mortgages and best terms available on the market, we make certain that our lenders can offer the flexibility you need to match your financial circumstances, whether you want to pay your mortgage off as quickly as possible, or if you need a long-term amortization.
Schedule your free consultation today to find out how our mortgage agents can help you find the perfect mortgage product with the lowest interest rate, help you determine a suitable mortgage amortization, and find out different ways you can pay off your mortgage quicker.
