Making Mortgage Principal Prepayments

A great way to save on interest costs and reduce the life of your mortgage is by making annual principal payments.

• If you choose a closed mortgage, you may prepay up to 10% of the original principal amount of your mortgage once in every 12-month period. The prepayment is applied directly to the principal of your mortgage.
• You may also Double Up your regular mortgage payments (of principal and interest).
• You can make a principal prepayment of $500 or more to your open mortgage as often as you like!
• Plus, you can make principal prepayments of any amount you wish on your mortgage principal at renewal time.

A principal prepayment of $2,000 a year can make a substantial difference in the time it takes to pay off your mortgage. Take a look:

Example: $80,000 Fixed-Rate Mortgage at 8.00%⁽⁶⁾