How To Pay Off Your Mortgage Faster

There's some good news in the Canadian mortgage arena. According to a recent poll by BMO Bank of Montreal, Canadians are on track to be mortgage free in less than 15 years.

This may come as a surprise considering the recent news of an overheated real estate market, Canadians' rising debt and the tightening of mortgage rules but BMO found that one in five surveyed Canadians has five years or fewer remaining on their mortgage with only 12 per cent with more than 25 years left.

Laura Parsons, Mortgage Expert, BMO Bank of Montreal said in a release, "these results suggest homeowners have made responsible choices and are in a good position to be debt-free in a reasonable amount of time," said Ms. Parsons. "Furthermore, this average mortgage repayment timeline will likely decrease as a result of the new mortgage regulations, as many buyers after July 9 will be required to have 25-year amortizations."

The survey found that:

• Two in five (43 per cent) prefer to increase their mortgage payments over time
• One in five (21 per cent) opt for a lump sum payment; with the majority (58 per cent) able to afford only a 10 per cent lump sum payment or less
• One-quarter (24 per cent) do not make any additional payments other than their basic mortgage payments

If you're in the 12 per cent who still have a hefty mortgage, there are ways to get rid of it in less time.

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