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Smart Strategies to Accelerate Your Mortgage Payments

July 12, 2023

Buying a new home is a significant achievement and for many, one of life’s milestone goals. While carrying a mortgage can feel like a lifelong commitment, there are mortgage payment strategies that can help you pay it down faster. Here are three ways to accelerate your mortgage payments to be mortgage-free faster.

1. Increase your regular mortgage payments

Most mortgages allow homeowners to increase their mortgage payment, sometimes up to 100% of their regular payment amount. Whether you’re in a position to increase your mortgage payment once in a while or with every payment going forward, every time you increase your mortgage payment you’re helping to make a significant dent in your mortgage balance.

You can calculate the impact of increasing your payments using the MCAP mortgage payment calculator. It’s worthwhile testing out a few different payment scenarios to find a balance between your cash flow needs and your goal of being mortgage-free faster.

2. Switch to bi-weekly or weekly mortgage payments

Are you making mortgage payments once a month? Did you know that increasing your mortgage payment frequency can have a meaningful impact on paying off your mortgage faster? By switching your mortgage payment frequency to an accelerated bi-weekly payment option, you make the equivalent of one additional monthly mortgage payment each year.

For example, on a $500,000 mortgage at an interest rate of 6.00% over an amortization period of 25 years, you can pay off your mortgage 4 years sooner! Take a look at the example below:

$500,000 mortgage at an interest rate of 6.00% over an amortization of 25 years

Monthly Payments

Payment Amount:

Payment Time:
25 Years

Accelerated Bi-Weekly Payments

Payment Amount:

Payment Time:
21 Years

As you can see, you will become mortgage-free 4 years earlier should you switch to an accelerated payment frequency.

Take a moment to calculate your mortgage payment using an accelerated schedule to see how quickly you can pay down your mortgage by increasing the frequency of payments. Use the mortgage payment calculator to easily compare your current and potential timeline.

Save big on interest costs

As you consider your options for paying down your mortgage faster, it’s important to understand what makes up your mortgage payment. The payment options listed here all help you pay down your mortgage principal faster, which in turn reduces your interest costs. So, not only can you become mortgage free faster by accelerating your mortgage payments, but you can save significantly on interest.

For instance, in the example above, you could save $86,371.08 in interest payments!

University Tution

That’s the equivalent of 4 years’ worth of university tuition for 3 students at a Canadian university – with some room to spare for books!


2 Midsize cars

2 new mid-sized cars – with a bit extra leftover for gas and maintenance

3. Make lump-sum mortgage payments

Do you receive a tax return every year? What about an annual bonus? Consider putting some of this cash toward your mortgage. By applying a lump sum amount to your mortgage, this payment goes directly toward the principal amount. This means you’re reducing your mortgage balance on a one-to-one basis – so a $2,000 payment reduces your mortgage by $2,000.

Many lenders allow you to make lump sum prepayments of up to 20% of the value of your mortgage every year – and it’s an option worth considering should you want to pay down your mortgage as fast as possible.

Accelerating your mortgage payments provides you with the opportunity to be mortgage-free earlier in life, giving you the financial freedom to pursue other dreams that matter to you. Plus, with the interest you can save over the course of your mortgage, you can achieve meaningful goals and build a secure financial future for yourself and your family.

You can also take a quick look at our video to see how to pay down your mortgage in less time.

Connect with an MCAP Expert Today

Are you an MCAP homeowner? Contact us with any questions you may have.

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