Paying down the mortgage faster


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Blog by Ottawa Real Estate | Ottawa Homes for Sale | Ottawa Relocation | November 14th, 2011


 

Good News “Canadians are taking hold of their mortgage Payments.”

Mortgage reduction

Canadians are taking action to insulate themselves from future economic downturns, according to a report released last week by the Canadian Association of Accredited Mortgage Professionals (CAAMP). 

For example, in the past year, approximately 36% of mortgage holders (about 2.1 million out of 5.8 million mortgage holders) made voluntary extra payments towards their mortgages.

 These include:

· 16% who increased their monthly payments (more than 900,000),
· 17% who made lump sum payments (almost one million), 
· 5% who increased the frequency of their payments (about 325,000).

What's more, roughly 6% of these mortgage holders made more than one of these additional efforts.

Of those who renewed their mortgage last year and got a lower rate, 24% voluntarily increased their payments to accelerate mortgage principal reduction.