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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.
  • Example: $350,000 Fixed-Rate Mortgage at 5.00%1

      Monthly payments and 25-year amortization Effect of $35,000 principal payment
    Mortgage repaid (years) 25 20yrs, 8 months
    Monthly Payment $2,035.62 $2,035.62
    Total interest cost2 $260,684 $188,205
    Interest savings2 N/A $72,479

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