How To Maximize Your Mortgage

How to maximize your mortgage By: Michael Anthony Lloyd: Guest Post for Canadian Budget Binder Many people get into their first home and are so busy fixing it up, moving in and just getting used to their new home they quickly forget about their mortgage, other than that big chunk of cash that goes out of their account every month. They are losing money by ignoring it! Many banks don’t explain much in the way of “best practices” with mortgage repayment.  One of the simplest is paying your mortgage on either a Weekly or biweekly basis to speed up the repayment process, but beware, some banks offer non-accelerated weekly or biweekly which do nothing to pay back your mortgage faster! Follow this simple system when setting up your payments: If you are paid every 2 weeks, pay your mortgage with biweekly accelerated  If you are paid any other way, pay your mortgage weekly accelerated. The reasoning is simple, say your mortgage is $1000 per month, paying biweekly accelerated puts more onto your mortgage in a year ($500 x 26 = $13,000 vs. $1000 x 12 = $12,000), same with weekly accelerated ($250 x 52 = $13,000). So apart from your mortgage […]