"These are the lessons no one teaches"
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first one🫣
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Two ways we’ve paid our mortgage faster and shortening our amortization period from 25 years to 10 years are by doubling up monthly payments and making lump sump payments to draw down the principal.
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Something else I didn’t mention was making a huge down payment at the time of purchase. In Canada most home purchases require a 5% down payment for a primary home (a home you live in). If you want to avoid paying the mortgage insurance, you can increase this percentage and make a higher down payment of 20% for example.
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This automatically reduces how much you borrow from the bank and allows you to pay off debt faster.
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Make sure your bank allows you to make lump sum payments and apply these to your principal, not interest. If you have the resources, opt to increase your monthly payments above and beyond what the bank has asked you to pay monthly. Ensure these extra payments go to your principal and not interest.
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Got questions? Leave them in the comments. Cheers to being debt free! ☺️ Don’t forget to share and follow if you found this helpful.
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