Six ways to reduce your mortgage costs

Your home is likely the biggest investment you'll ever make. Whether you're a first-time buyer or you're refinancing, you can save money on your mortgage payments.

Here are six tips to cut your mortgage costs:

1. Get the very best rate.

Shop around or hire a mortgage broker to make sure you get a discount off the posted rate, sometimes a full per centage point.

2. Up your down payment 

Get the largest down payment you can afford. If you have a birthday or another celebration
coming up and relatives and friends ask for gift ideas, suggest they contribute to your
down payment.

3. Reduce the amortization period

Shortening your loan repayment or amortization period will result in higher monthly payments. But you'll build equity at a faster rate and pay less in total interest over the life of the mortgage.

4. Review prepayment options

Pay your mortgage principal before it is due.  Restrictions typically apply and may include specific times when you can prepay, the amount you can prepay and prepayment penalties.

5. Pay every second week

You'll make 26 payments in a year, or the 13 months of mortgage payments instead of 12 monthly payments.

6. Negotiate fees

When you arrange your mortgage, negotiate application fees and administrative costs.    

For more information on how to reduce your mortgage, contact your Royal Pacific REALTOR®.

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For more information on this article or how we can help you with your real estate needs, contact your Royal Pacific REALTOR® at 604-266-8989 or use our online form for 24/7 service Contact us