How to Pay Off Your Mortgage Faster ?

For many homeowners, the prospect of paying off their mortgage early and saving on interest is an attractive one. It can free up funds for other investments or financial goals and provide peace of mind. Here’s a detailed step-by-step guide on how to do just that, courtesy of Shelto, your trusted mortgage brokerage in Canada.

  1. Understand Your Mortgage Terms
  • Review Your Mortgage Agreement: Understand the terms, interest rate, amortization period, and any penalties for early payment.
  • Calculate Potential Savings: Determine how much you can save by paying off your mortgage early.

  1. Choose the Right Mortgage Product
  • Fixed vs. Variable Rate: Consider refinancing to a mortgage product that allows more flexibility in payments.
  • Consult with Shelto’s Mortgage Agents: Explore options like open mortgages, which often allow for more significant prepayments without penalties.

  1. Increase Payment Frequency
  • From Monthly to Bi-weekly: Making payments every two weeks instead of monthly can result in one extra payment per year.
  • Example: On a $200,000 mortgage at 3%, switching to bi-weekly payments could save over $16,000 in interest and reduce the term by nearly 5 years.

  1. Make Lump Sum Prepayments
  • Use Bonuses or Tax Returns: Apply unexpected windfalls directly to your principal.
  • Understand Prepayment Privileges: Ensure that your mortgage allows for lump-sum prepayments without penalties.
  • Example: A $5,000 lump sum on a $200,000 mortgage could reduce the total interest by $7,000 over the life of the loan.

  1. Increase Regular Payments
  • Consider an Incremental Increase: Even a small increase can make a significant difference over time.
  • Example: An additional $100 per month on a $200,000 mortgage at 3% could save nearly $12,000 in interest.

  1. Refinance to a Shorter Term
  • Evaluate Your Options with Shelto: Refinancing to a shorter term can lead to significant interest savings.
  • Example: Moving from a 30-year to a 15-year term could save tens of thousands of dollars in interest.

  1. Invest in a Rental Property
  • Use Rental Income: Consider buying a rental property and using the income to pay down your mortgage.
  • Consult with Shelto Agents: Understand how leveraging real estate investments can help you.

  1. Avoid Lifestyle Inflation
  • Maintain Your Lifestyle: Resist the urge to spend more as your income increases; instead, direct the extra funds towards your mortgage.

  1. Monitor Interest Rates
  • Consider Refinancing: If interest rates drop significantly, refinancing might save you money, allowing you to pay off the mortgage faster.

  1. Stay Informed and Regularly Review Your Strategy
  • Consult with Shelto’s Experts: Regularly review your mortgage payment strategy with our experts to ensure it aligns with your financial goals.


Paying off your mortgage faster is a significant financial decision that can lead to substantial savings in interest and increased financial freedom. Strategies such as increasing payment frequency, making lump-sum prepayments, increasing regular payments, refinancing to a shorter term, and wise investment decisions can all contribute to this goal.

At Shelto, we’re committed to helping you navigate these options and find the right strategy for your unique situation. Our experienced mortgage agents can provide personalized guidance to ensure you make informed decisions.

Why Choose Shelto?

With a focus on transparency, personalized service, and a wide range of mortgage products, Shelto is your partner in achieving your financial goals. We believe in empowering our clients with the knowledge and tools they need to make the best decisions for their financial future.


Note: This guide is for informational purposes and should not replace personalized advice from a Shelto mortgage agent or other financial professionals. Individual circumstances, market conditions, and mortgage agreements may vary, affecting the best strategies for each homeowner. Always consult with a professional to understand your specific situation.

If you have any questions or need assistance, please don’t hesitate to reach out to us. Whether it’s about our products, services, or anything else, we’re eager to provide you with the information you need. ‘
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