Paying down the mortgage faster
Good News “Canadians are taking hold of their mortgage Payments.”
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.