Did you know you can pay less interest on your mortgage by paying ahead?
Making extra payments on your mortgage above and beyond your regularly scheduled payments can reduce the amount of interest you pay over the lifetime of your loan. Each mortgage contract comes with an amount you’re allowed to pay without penalty. This is either a lump sum payment up to a certain amount of the total mortgage amount, or by increasing your payment amount.
Use our calculator below to discover how much time and money you can save by pre-paying a portion of your mortgage
The calculations used on this page are based on the best available information at the time it was last updated/published. The accuracy of the results depends on the information that you enter. If you have questions about how the prepayment analysis is calculated, or would like a complimentary assessment that takes into account more factors, contact our team to start a conversation today.
Your Prepayment Analysis
- Calculations can vary by up to 10% on property type, interest rate type, and down payment amount
- Contact your mortgage agent today to get an accurate estimate
When should I prepay my mortgage?
There are many situations where pre-paying your mortgage or increasing your mortgage payments makes sense, but there are also a few where it’s best to keep your mortgage payments as-is.
You have no other high interest debt
If your goal is to reduce the amount of interest you pay on your loans, choosing to reduce the balance of higher-interest debts like personal loans and credit cards will help you achieve this goal more than pre-paying some of your mortgage.
You have a variable rate mortgage and expect rates to rise
Variable rate mortgages come with many advantages, however one of the main disadvantages are that your mortgage payment is subject to changes in the wider economic forecast like interest rate dips and hikes. If you’re expecting that rates might rise, pre-paying your mortgage will help reduce your overall balance and the impact that those rate hikes will have.
Your mortgage rate is higher than current investment returns
If your two options are to pre-pay your mortgage or invest the same amount of money, you could be better off financially by investing if the returns are more than the interest you would be paying on your mortgage for the same time period.
You're looking for psychological peace of mind
While the financial factors are certainly important to determine whether to pre-pay your mortgage, considering the emotional side to paying off a large debt like a mortgage also has to be considered. Some people prefer feeling debt-free and are okay with potentially losing out on higher investment returns.
Resources and articles on paying mortgages early
Everything You Need to Know About Mortgage Pre-Payment Penalties for Canadians
Considering a change or paying off your mortgage early? Learn about pre-payment penalties and how to minimize them.
Renewing Your Mortgage? Here’s How to Switch Mortgage Providers
Planning on switching mortgage providers when your mortgage renews? Here’s how to do it.
Mortgage Prepayments & Penalties
If your goal is to pay down your mortgage faster, or if you are thinking of breaking your mortgage early by selling your property, you’ll want to know the details in your prepayment clause.
Is Debt Consolidation a Good Idea in 2025?
Household debt is on the rise in British Columbia. If you have multiple loans, is consolidating them a good idea? We work out the pros and cons.
Need expert advice? Look no further than Auxilium!
At Auxilium Mortgage, we specialize in helping BC residents through all stages of their mortgage, from finding the perfect mortgage to sourcing alternative lenders when things don’t go according to plan. If you’re considering changing mortgage providers, paying down your mortgage early, or are looking for advice on whether your current mortgage fits your financial situation, our team is here for you. Contact us today for a no-obligations consultation!
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