If you’re a homeowner in Canada, you know that mortgages can be expensive. But there are ways to reduce your mortgage costs. Here are a few tips on how to reduce your mortgage costs in Canada.
1. Shop around for the best rate:
Mortgage rates can vary from lender to lender, so it pays to shop around for the best rate. Compare different lenders and their rates, and look for any special offers or discounts. You can also consider refinancing your mortgage if you can get a better rate.
2. Make a larger down payment:
Making a bigger down payment can help you reduce your mortgage costs. The more money you put down, the lower your mortgage payments will be. You may even be able to qualify for better mortgage rates if you make a large down payment.
3. Choose a shorter mortgage term:
Shorter mortgage terms mean higher monthly payments, but they also mean lower overall interest costs. Consider switching to a shorter mortgage term if you can afford to do so.
4. Make extra payments:
Making extra payments when you can afford it can help reduce your mortgage costs. Every extra payment you make goes directly towards paying down your principal, which helps you pay down your mortgage faster and reduces interest costs.
5. Make bi-weekly payments:
Making bi-weekly payments instead of monthly payments can help you pay off your mortgage faster and reduce your mortgage costs. With bi-weekly payments, you make one-half of your regular payment every two weeks, which adds up to one extra payment a year.
6. Consider an adjustable rate mortgage:
Adjustable rate mortgages (ARMs) typically have lower interest rates than fixed-rate mortgages. But, they also come with the risk that your interest rate could increase over time. If you’re comfortable with the risk, an ARM could help you reduce your mortgage costs in the short-term.
7. Make your home more energy efficient:
Making your home more energy efficient can help you save money on your energy bills, which can help you reduce your mortgage costs. Look for ways to make your home more energy efficient, such as adding insulation, sealing air leaks, and replacing old appliances with more energy-efficient models.
By following these tips, you can help reduce your mortgage costs in Canada. Shopping around for the best rate, making a larger down payment, choosing a shorter mortgage term and making extra payments are all great ways to reduce your mortgage costs. Consider these tips and see how much you can save.