Pay Off Your Mortgage Faster | National Bank of Canada

Pay Off Your Mortgage Faster

You want to pay your mortgage off as quickly as possible but you don't want to incur any mortgage penalties...

You have four options:

  • Increase your payment frequency
  • Make a payment on principal
  • Make an additional payments
  • Increase your payment amount

Increase your payment frequency

You can increase the frequency of your payments by switching from monthly to bi-weekly or weekly payments. This will allow you to pay down more of the principal each year, thereby decreasing the total repayment period of your mortgage.

To know how much money you can save by increasing your monthly payment, use our calculator.

My Savings on Interest

Make a payment on principal

If you have a closed mortgage, you can repay up to 10% of the borrowed amount at any time during each calendar year. You can make one or more payments on principal during the year.

Make an additional payment

At each regular payment date, you can make an additional payment that is equal to or less than your regular payment (principal and interest).

Increase your payment amount

You can increase the amount of your payment by up to twice the original amount. Note, however, that you can only do this once per calendar year. You must then keep this new payment for the remainder of the term. When your term expires, you can of course repay any amount you wish.

 


1 Current interest will be calculated if the payment(s) is(are) not made on the scheduled payment date.