May 17, 2025 • 11 mins
Looking to pay off your mortgage faster while keeping your lifestyle intact? In this episode of Let’s Talk House, host Lei Villar-Cisneros breaks down 7 smart, proven strategies to save thousands in interest, shorten your mortgage term, and build financial freedom—right here in the Greater Toronto Area. Whether you're a first-time buyer or seasoned homeowner, this episode is packed with actionable tips and expert insights.
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Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
SPEAKER_00 (00:00):
What if I told you there are simple ways to cut
years off your mortgage and savetens of thousands of dollars
without making huge sacrifices?
Let's dive in.
Only here at Let's Talk House,your go-to source for all things
real estate, mortgage and beyondin the Greater Toronto Area in
(00:22):
Canada.
Welcome home.
I'm your host, LeyVillar-Cisneros.
Today, we're talking about sevensmart strategies to optimize
your mortgage, boost yoursavings, and even pay off your
home years earlier.
With interest rates stillfluctuating and home prices
(00:46):
adjusting in the GTA, smartmortgage management is more
important than ever.
So if you're a homeowner orplanning to become one soon,
these steps are going to be gamechangers for you.
Let's jump right in.
Strategy number one, makebiweekly payments instead of
monthly payments.
(01:07):
Did you know that just byadjusting your mortgage payment
from 12 full payments per yearto 26 half payments, you'll be
stashing one extra full paymenta year, chipping away at your
principal faster and savingthousands in interest over time
without even dipping into yoursavings?
(01:28):
Smart, eh?
This is possible because whenyou make payments in your
mortgage, it goes first to theinterest.
Then whatever is left goestowards your principal.
So if you structure yourmortgage payments into biweekly
and keeping the same paymentjust by splitting it into half,
you'll be paying less interestand more into the principal.
(01:50):
Your bank won't tell you this.
So starting today, try toarrange with your lender an
accelerated biweekly payment.
That's what this strategy isactually called.
To give you an example, let'ssay your monthly payment
mortgage is 1,000 bucks.
If you split that into 500 andpaying the next half exactly two
(02:14):
weeks from today and keepingthis until you finish your term,
you'll be able to save one monthworth of principal.
Now, that's smart.
Over time, this will convertinto seven years of savings if
you keep up with it.
Strategy number two, round upyour payments.
(02:34):
If your mortgage payment is, forexample, 1,543, round it up to
1,600 or even 1,700 if possible.
Those few extra dollars add upbig over the years, shaving time
and interest off your mortgage.
(02:56):
Strategy number three, you slumpsome payments.
Did you know that you may prepayyour principal up to a maximum
of 10, 15, or even 20% dependingon the lender?
Check your contract.
So if your original mortgagebalance is 1 million, for
example, then you may prepay upto$200,000 in a year.
(03:22):
If you can actually do that,you'll be paying off your
mortgage in just five years.
Wow! Well, you might be asking,where in the world will I get
that kind of money, Leigh?
Think about it.
Are you expecting a tax refund,bonus at work, extra cash,
whatever that is?
(03:42):
No matter how small or big thatis, applying that money directly
to your principal cansignificantly reduce your
balance.
Many mortgages allow annualpayments.
lump sum payments so use thatfeature actually when you check
for a mortgage you should askfor this because this can save
(04:05):
you a lot strategy number fourrefinance to a better rate but
wisely if interest rate dip oryou qualify for a better rate
based on your improved creditRefinancing can lower your
payment or shorten youramortization.
(04:27):
However, if you're pulling theequity money and stashing it
somewhere other than yourmortgage, then it will actually
backfire.
If you are planning onrefinancing to get a better
rate, be careful and make surethat you factor in penalties and
fees before jumping in.
(04:47):
Talk to your mortgage brokerbefore diving into this
strategy.
This might actually work in thissituation we're in now, that
interest rates are going down.
If you're currently on avariable rate mortgage, then
it's easy to just do thisbecause the penalty might be
just three months interest.
(05:08):
There are, however, some lendersthat have different penalty
calculation, even if you are onvariable rate.
Be sure to check and compute andask a lot of questions on this.
before diving in we're nowmoving to strategy number five
shorten your amortization periodamortization period is the life
(05:33):
of your mortgage that's usuallystarting from 25 or 30 years in
canada if everything is the sameas today and your amortization
is for example 25 years It meansyou'll finish paying off your
mortgage in 25 years.
(05:53):
When possible, opt for a 20-yearinstead of a 25-year term.
Yes, the monthly payments areslightly higher, but you'll save
a fortune in interest and becomemortgage-free faster.
Strategy number four, refinanceto a better rate, but wisely.
(06:15):
If interest rate dip or youqualify for a better rate based
on your improved credit,refinancing can lower your
payment or shorten youramortization.
However, if you're pulling theequity money and stashing it
somewhere other than yourmortgage, then it will
actually...
(06:36):
backfire if you are planning onrefinancing to get a better rate
be careful and make sure thatyou factor in penalties and fees
before jumping in talk to yourmortgage broker before diving
into this strategy this mightactually work in this situation
we're in now that interest ratesare going down if you're
(06:59):
currently on a variable ratemortgage then it's easy to just
do this cause the penalty mightbe just three months interest.
There are, however, some lendersthat have different penalty
calculation, even if you are onvariable rate.
Be sure to check and compute andask a lot of questions on this
(07:21):
before diving in.
We're now moving to strategynumber five, shorten your
amortization period.
Amortization period is the lifeof your mortgage.
That's usually starting from 25or 30 years in Canada.
If everything is the same astoday and your amortization is
(07:46):
for example 25 years, it meansyou'll finish paying off your
mortgage in 25 years.
When possible, opt for a 20-yearinstead of a 25-year term.
Yes, the monthly payments areslightly higher, but you'll save
a fortune in interest and becomemortgage-free faster.
(08:09):
Now, there's a disadvantage tothis strategy.
Say, if you lose your job andyou're paying the higher
mortgage, then it might hurt abit.
So, implementing your currentamortization and just paying
more to the principal will havethe same effect as this
strategy, but different.
And if you run into financialdifficulty, then less is better
(08:34):
for the tight budget.
Many lenders offerre-advanceable mortgages where
you can borrow back what you'vepaid down.
This is also known as HELOC orHome Equity Line of Credit.
(08:56):
HELOC gives you more freedom foremergency or investing purposes
because the less mortgage youhave, the more room you have to
borrow without having toreapply.
Tempting, right?
Yes.
Helpful for mortgage freedom?
No.
Stay disciplined and treat yourmortgage like a one-way street.
(09:21):
Pay it down and move forward.
Last but not the least isstrategy number seven.
Make one extra full payment peryear.
Even one extra payment annuallycan knock off years on your
mortgage.
Set a goal to pay a bit morearound bonus time, year end, or
(09:42):
even your birthday.
Your future self will thank you.
Personally, I used double up inthe past.
This is when you pay an extrapayment equal to the principal
amount every month.
But when I became a parent,there were so many expenses that
I cannot cope up.
Then I did an extra$100 perpayment.
(10:04):
To give you a quick recap on theseven strategies to save on your
mortgage, number one, biweeklypayments, number two, roundup
payments, number three, lump sumboosts, Number four, strategic
refinancing.
Number five, shorteramortization.
Number six, no reborrowing.
(10:28):
And finally, number seven, oneextra payment per year.
Each of this alone can make areal impact.
If you put them all together,you'll be amazed how much faster
you can be mortgage-free, evenin today's challenging market.
So let me know in the commentbelow which strategy you have
(10:50):
done or planning on doing andcome back in a year and comment
back how much money you havesaved just by doing this.
Start with just splitting yourmortgage into bi-weekly
accelerated payment, then maybeadding$100 to a pay schedule.
If that feels easy-peasy, thenput it on a regular basis.
(11:10):
You'll be amazed how much yousaved.
Well, folks, that's all the timeI have today.
My name is Ley Villars-Cisneros,and this is Let's Talk House.
UNKNOWN (11:24):
Let's Talk House
SPEAKER_00 (11:25):
You've been listening to Let's Talk House
Podcast, your go-to source forall things real estate,
mortgage, and beyond in theGreater Toronto Area in Canada.
Be sure to press the followbutton so you won't miss an
episode.
Also, subscribe to my YouTubechannel, follow me on Instagram,
(11:46):
and Facebook at Leyvilar RealEstate.
As always, thanks for listening,and we'll see you next time.
time.
What if I told you there are simple ways to cut
years off your mortgage and savetens of thousands of dollars
without making huge sacrifices?
Let's dive in.
Only here at Let's Talk House,your go-to source for all things
real estate, mortgage and beyondin the Greater Toronto Area in
(00:22):
Canada.
Welcome home.
I'm your host, LeyVillar-Cisneros.
Today, we're talking about sevensmart strategies to optimize
your mortgage, boost yoursavings, and even pay off your
home years earlier.
With interest rates stillfluctuating and home prices
(00:46):
adjusting in the GTA, smartmortgage management is more
important than ever.
So if you're a homeowner orplanning to become one soon,
these steps are going to be gamechangers for you.
Let's jump right in.
Strategy number one, makebiweekly payments instead of
monthly payments.
(01:07):
Did you know that just byadjusting your mortgage payment
from 12 full payments per yearto 26 half payments, you'll be
stashing one extra full paymenta year, chipping away at your
principal faster and savingthousands in interest over time
without even dipping into yoursavings?
(01:28):
Smart, eh?
This is possible because whenyou make payments in your
mortgage, it goes first to theinterest.
Then whatever is left goestowards your principal.
So if you structure yourmortgage payments into biweekly
and keeping the same paymentjust by splitting it into half,
you'll be paying less interestand more into the principal.
(01:50):
Your bank won't tell you this.
So starting today, try toarrange with your lender an
accelerated biweekly payment.
That's what this strategy isactually called.
To give you an example, let'ssay your monthly payment
mortgage is 1,000 bucks.
If you split that into 500 andpaying the next half exactly two
(02:14):
weeks from today and keepingthis until you finish your term,
you'll be able to save one monthworth of principal.
Now, that's smart.
Over time, this will convertinto seven years of savings if
you keep up with it.
Strategy number two, round upyour payments.
(02:34):
If your mortgage payment is, forexample, 1,543, round it up to
1,600 or even 1,700 if possible.
Those few extra dollars add upbig over the years, shaving time
and interest off your mortgage.
(02:56):
Strategy number three, you slumpsome payments.
Did you know that you may prepayyour principal up to a maximum
of 10, 15, or even 20% dependingon the lender?
Check your contract.
So if your original mortgagebalance is 1 million, for
example, then you may prepay upto$200,000 in a year.
(03:22):
If you can actually do that,you'll be paying off your
mortgage in just five years.
Wow! Well, you might be asking,where in the world will I get
that kind of money, Leigh?
Think about it.
Are you expecting a tax refund,bonus at work, extra cash,
whatever that is?
(03:42):
No matter how small or big thatis, applying that money directly
to your principal cansignificantly reduce your
balance.
Many mortgages allow annualpayments.
lump sum payments so use thatfeature actually when you check
for a mortgage you should askfor this because this can save
(04:05):
you a lot strategy number fourrefinance to a better rate but
wisely if interest rate dip oryou qualify for a better rate
based on your improved creditRefinancing can lower your
payment or shorten youramortization.
(04:27):
However, if you're pulling theequity money and stashing it
somewhere other than yourmortgage, then it will actually
backfire.
If you are planning onrefinancing to get a better
rate, be careful and make surethat you factor in penalties and
fees before jumping in.
(04:47):
Talk to your mortgage brokerbefore diving into this
strategy.
This might actually work in thissituation we're in now, that
interest rates are going down.
If you're currently on avariable rate mortgage, then
it's easy to just do thisbecause the penalty might be
just three months interest.
(05:08):
There are, however, some lendersthat have different penalty
calculation, even if you are onvariable rate.
Be sure to check and compute andask a lot of questions on this.
before diving in we're nowmoving to strategy number five
shorten your amortization periodamortization period is the life
(05:33):
of your mortgage that's usuallystarting from 25 or 30 years in
canada if everything is the sameas today and your amortization
is for example 25 years It meansyou'll finish paying off your
mortgage in 25 years.
(05:53):
When possible, opt for a 20-yearinstead of a 25-year term.
Yes, the monthly payments areslightly higher, but you'll save
a fortune in interest and becomemortgage-free faster.
Strategy number four, refinanceto a better rate, but wisely.
(06:15):
If interest rate dip or youqualify for a better rate based
on your improved credit,refinancing can lower your
payment or shorten youramortization.
However, if you're pulling theequity money and stashing it
somewhere other than yourmortgage, then it will
actually...
(06:36):
backfire if you are planning onrefinancing to get a better rate
be careful and make sure thatyou factor in penalties and fees
before jumping in talk to yourmortgage broker before diving
into this strategy this mightactually work in this situation
we're in now that interest ratesare going down if you're
(06:59):
currently on a variable ratemortgage then it's easy to just
do this cause the penalty mightbe just three months interest.
There are, however, some lendersthat have different penalty
calculation, even if you are onvariable rate.
Be sure to check and compute andask a lot of questions on this
(07:21):
before diving in.
We're now moving to strategynumber five, shorten your
amortization period.
Amortization period is the lifeof your mortgage.
That's usually starting from 25or 30 years in Canada.
If everything is the same astoday and your amortization is
(07:46):
for example 25 years, it meansyou'll finish paying off your
mortgage in 25 years.
When possible, opt for a 20-yearinstead of a 25-year term.
Yes, the monthly payments areslightly higher, but you'll save
a fortune in interest and becomemortgage-free faster.
(08:09):
Now, there's a disadvantage tothis strategy.
Say, if you lose your job andyou're paying the higher
mortgage, then it might hurt abit.
So, implementing your currentamortization and just paying
more to the principal will havethe same effect as this
strategy, but different.
And if you run into financialdifficulty, then less is better
(08:34):
for the tight budget.
Many lenders offerre-advanceable mortgages where
you can borrow back what you'vepaid down.
This is also known as HELOC orHome Equity Line of Credit.
(08:56):
HELOC gives you more freedom foremergency or investing purposes
because the less mortgage youhave, the more room you have to
borrow without having toreapply.
Tempting, right?
Yes.
Helpful for mortgage freedom?
No.
Stay disciplined and treat yourmortgage like a one-way street.
(09:21):
Pay it down and move forward.
Last but not the least isstrategy number seven.
Make one extra full payment peryear.
Even one extra payment annuallycan knock off years on your
mortgage.
Set a goal to pay a bit morearound bonus time, year end, or
(09:42):
even your birthday.
Your future self will thank you.
Personally, I used double up inthe past.
This is when you pay an extrapayment equal to the principal
amount every month.
But when I became a parent,there were so many expenses that
I cannot cope up.
Then I did an extra$100 perpayment.
(10:04):
To give you a quick recap on theseven strategies to save on your
mortgage, number one, biweeklypayments, number two, roundup
payments, number three, lump sumboosts, Number four, strategic
refinancing.
Number five, shorteramortization.
Number six, no reborrowing.
(10:28):
And finally, number seven, oneextra payment per year.
Each of this alone can make areal impact.
If you put them all together,you'll be amazed how much faster
you can be mortgage-free, evenin today's challenging market.
So let me know in the commentbelow which strategy you have
(10:50):
done or planning on doing andcome back in a year and comment
back how much money you havesaved just by doing this.
Start with just splitting yourmortgage into bi-weekly
accelerated payment, then maybeadding$100 to a pay schedule.
If that feels easy-peasy, thenput it on a regular basis.
(11:10):
You'll be amazed how much yousaved.
Well, folks, that's all the timeI have today.
My name is Ley Villars-Cisneros,and this is Let's Talk House.
UNKNOWN (11:24):
Let's Talk House
SPEAKER_00 (11:25):
You've been listening to Let's Talk House
Podcast, your go-to source forall things real estate,
mortgage, and beyond in theGreater Toronto Area in Canada.
Be sure to press the followbutton so you won't miss an
episode.
Also, subscribe to my YouTubechannel, follow me on Instagram,
(11:46):
and Facebook at Leyvilar RealEstate.
As always, thanks for listening,and we'll see you next time.
time.
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