2 Practical Ways To Reduce Your Amortization

The Canadian Mortgage App Team • August 29 2018

There’s so many extensive information out there about how to pay off your mortgage faster, and after reading numerous articles and speaking to experts, we have narrowed it down to only two. Everything else is essential such as making sure you get the best deal or lowest interest rates. When it comes down to what undoubtedly makes a difference between securing a mortgage and paying it off two to five years earlier than scheduled; we found that it’s all about these two things.

Here are our top two things you should consider doing that could knock two to five years off your mortgage.

One - Choose an “accelerated” option for your mortgage payments

You may obtain a 25-year mortgage, but this option will, in the end, inevitably make you feel as though you had merely selected a 20-year amortization period just by switching from monthly to so-called accelerated bi-weekly payments. Your payment is relatively higher, covering the equivalent of a 13th monthly mortgage instalment every year which shrinks the amortization period by almost two-three years.

Two - Lump sum payments

If you identify yourself as one of those lucky individuals to receive a refund at the end of tax season, April 30th, contemplate stowing it. For example, your CPP overpayment refund in a savings account along with any additional monetary gains you may receive. At the end of the year deposit that lump sum onto your mortgage, which will decrease your principal.

Our team continuously strive to refine and simplify the mortgage process and calculations out there by making every information in CMA transparent. We thought best inform you of a feature called "Extra Payment" you may not have discovered yet.

  • To locate this feature go to the Purchase Calculator. In the Payment frequency, we have incorporated all six frequency options from Monthly to Semi-Monthly. Select three dots within the circle to the right of each row, and there you will find the extra payments tab. We’ve worked vigorously to equip you with all possible scenarios, including weekly, total interest and amortization.


Whether you're a mortgage holder, a first-time buyer querying about mortgages or still contemplating whether to continue renting or start exploring, we advise checking out this feature. The extra payments tab along with our top two's will empower you and set you on the right path.

Remember if you require any guidance, use the support chat in the extra tab and our support team will gladly assist you.