Home Ownership and Mortgages

Home Ownership and Mortgages - Good News, Bad News


Stats Canada recently reported that home ownership in Canada has increased from 60% of families in 1999 to 63% in 2016. That's good news for the Canadian economy and most families, but the bad news is the number of families who have paid off their mortgage has decreased from 46% to 43%. During this study period we saw record low interest rates, so in theory we should have had an advantage paying off our mortgages?

I don't think the rates are the issue, it's our behavior, and changing our behavior can be very easy and yield great results.

For example, on a $300,000 mortgage, if you switch from monthly payments to accelerated bi-weekly payments (half your monthly payment paid every second Friday) you reduce your mortgage over a 5 year term by an additional $7,492 and take 2.5 years off the life of your mortgage. The best thing about bi-weekly payments is you end up paying 1 extra monthly payment a year, but it's broken out over 26 payments, so you really don't notice the difference until you see the massive savings!

I also encourage clients to take advantage of increasing their payments or putting lump sums down when they have a little extra cash, like when you receive your income tax return or annual bonus. A little extra can mean a lot over time, even small amounts compound over time into large savings.

If you want to discuss how you can pay down your mortgage faster call me for a mortgage review today.

Don't sign that Mortgage Renewal - talk to us First!

Daryl French, AMP

Royal LePage Kelowna

#1 – 1890 Cooper Road

Kelowna, BC V1Y 8B7

Office: 250-860-1100

Cell: 250-878-8382


Buying or Selling You Need The Wright Experience!

The trade marks displayed on this site, including CREA®, MLS®, Multiple Listing Service®, and the associated logos and design marks are owned by the Canadian Real Estate Association. REALTOR® is a trade mark of REALTOR® Canada Inc., a corporation owned by Canadian Real Estate Association and the National Association of REALTORS®. Other trade marks may be owned by real estate boards and other third parties. Nothing contained on this site gives any user the right or license to use any trade mark displayed on this site without the express permission of the owner. 

powered by WEBKITS