Canadian Mortgage Pre-Payment Privileges

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Pre-Payment Privileges

In Canada, mortgage pre-payment privileges refer to the ability of borrowers to make additional payments on their mortgage loan beyond their regular monthly payments, without incurring any penalties or fees.

There are several ways to take advantage of these privileges to pay off a mortgage faster.

Lump-sum Payments

Borrowers can make a lump-sum payment towards their mortgage principal at any time during the term of their mortgage.

This can be done using savings, a bonus, or other windfall amounts.

The lump-sum payment goes directly towards reducing the outstanding mortgage principal and can save a significant amount of interest over the life of the mortgage.

Increased Mortgage Payments

Borrowers can also increase their regular mortgage payments, which will help them pay off their mortgage faster.

By increasing the amount of their regular payments, more money is applied to the principal each month, which can help reduce the interest paid over the life of the mortgage.

These types of top-up payments can knock up to 10 years off your mortgage and 1000s of dollars in interest charges.

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Double Up Payments

Another option is to double up on mortgage payments. This means making two payments in one month, essentially making an extra payment every year.

This can help reduce the amortization period of the mortgage …MASSIVELY…and save a significant amount of interest over the life of the mortgage.

Accelerated Payments

Finally, borrowers can opt for accelerated payments. This means making payments more frequently than the regular monthly payments.

For example, instead of making monthly payments, borrowers can make bi-weekly or weekly payments.

This helps to reduce the principal balance more quickly, which can help to save money on interest over the life of the mortgage.  Typically will knock 4-5 years off your mortgage amortization.


It’s important to note that pre-payment privileges and terms may vary depending on the lender and mortgage product.

It’s important to review the terms and conditions of your mortgage agreement to understand the pre-payment privileges available to you and any associated fees or restrictions.

Conclusions and Further Thoughts

SIMPLE…These prepayment options can KNOCK YEARS OFF YOUR LOAN.



PS – One of my hobbies is blogging about mortgages, debt and government policy.  During the day I’m a MORTGAGE BROKER in Kelowna, BC!

Check out the Huber Mortgage Home Buyers Guide HERE

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