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%(1)

Monthly payments and 25-year amortization Effect of $8,000 principal payment
Mortgage repaid (years) 25 16.3
Total interest cost(2) $103,165 $79,873
Interest savings(2) vs. 25-year mortgage N/A $23,292
Mortgage repaid (years)
Total interest cost(2)

Interest savings(2) vs. 25-year mortgage

Mortgage repaid (years)
Total interest cost(2) Interest savings(2) vs. 25-year mortgage
Mortgage repaid (years) Total interest cost(2)
Interest savings(2) vs. 25-year mortgage
Monthly payments and 25-year amortization $103,165 25 N/A
Effect of $8,000 principal payment $79,873 16.3 $23,292

We're Here to Help

Call us today about managing your mortgage. We can help explain your options and offer advice on mortgage solutions to help you achieve your goals.

  • PhoneCall 1-800-769-2511