How Advance Payment Mortgage Calculators Work in Canada

When it comes to paying off your mortgage in Canada, there are several options available to help you accelerate your payment schedule. Two common methods include accelerated bi-weekly and accelerated weekly payments. By increasing your regular mortgage payment amount, you can make significant progress on paying off your mortgage faster.

However, it's important to note that once you increase your mortgage payment frequency or amount, it may not be possible to decrease it in the future. Some lenders may only allow you to increase your regular mortgage payment, but not decrease it. This means that you'll need to carefully consider your financial situation before making any changes to your mortgage payment schedule.

Another important consideration is the 'increase your mortgage' feature offered by some lenders. This feature allows you to make additional payments towards your mortgage principal balance, but does not affect your original mortgage payment amount. However, going over the maximum allowed limit for extra payments may result in penalties being applied.

Fortunately, there are also options available to make one-time prepayments or double up on your regular mortgage payment. For example, RBC allows you to make an extra payment of up to 10% of your original mortgage principal amount every year, as well as 'double up' on your regular mortgage payment to prepay between $100 and the full amount of your regular payment.

It's also important to note that not all lenders allow extra mortgage payments or may limit the amount you can make each year. Therefore, it's essential to review your mortgage agreement and understand any restrictions or penalties associated with making extra payments before proceeding.

By using an advance payment mortgage calculator, you can determine how much you need to pay each month in order to achieve your financial goals and pay off your mortgage faster. With careful planning and consideration of the options available, you can take control of your mortgage payments and make significant progress on paying off your debt.

Advance payment mortgage calculator