HOW TO SAVE MONEY ON INTEREST AND
PAY OFF YOUR MORTGAGE SOONER
Becoming mortgage-free faster is possible with just a few smart moves. By paying a little extra toward your mortgage, you can cut years off the loan and save thousands in interest.
1. ROUND UP YOUR MONTHLY PAYMENTS
Pay a Little More Each Month Than Required
Example: Instead of $734, pay $800.
Result: Save over $48,000 in interest and pay off your mortgage 7.5 years sooner.
2. MAKE SUMP-SUM PAYMENTS
Put extra money (like tax refunds or work bonuses) directly on your mortgage.
- Example: On a $100,000 mortgage, adding a $1,000 tax refund.
- Result: Save $8,600 in interest and cut 1 year off your mortgage.
3. PICK A SHORTER MORTGAGE TERM
Choose a 15-Year Instead of a 30-Year Mortgage If You Can Afford Slightly Higher
Example: $200 more per month.
Result: Save $92,000 in interest overall.
Paying a little extra—whether monthly, through lump sums, or by choosing a shorter term—can save you a fortune and get you mortgage-free years earlier.
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Information is deemed reliable but not guaranteed. Sourced in part from the Toronto Regional Real Estate Board (TRREB). Provided solely for consumers with a bona fide interest in the purchase, sale, or lease of real estate. Unauthorized use, reproduction, or distribution is strictly prohibited.