Prepayment Privileges: The Mortgage Feature Most Canadians Ignore

If you’re not using your prepayment privileges, you’re leaving money on the table.

This is one of the most powerful—and most overlooked—features in a mortgage.

What Are Prepayment Privileges?

Prepayment privileges allow you to:

• Pay extra toward your mortgage

• Pay it off faster

• Reduce the amount of interest you pay

Without penalties (up to a certain limit).

Common Prepayment Options

Most lenders allow:

• Lump sum payments (e.g., 10–20% annually)

• Increased monthly payments

• Double-up payments

Why This Matters

Every extra dollar you put toward your mortgage:

• Goes directly to your principal

• Reduces future interest

• Shortens your amortization

Real Impact Example

Let’s say you add just a little extra each month.

Over time, you could:

• Pay off your mortgage years earlier

• Save thousands in interest

Small moves = big results.

The Catch

Every lender is different.

Some have:

• Strict limits

• Less flexibility

• Hidden restrictions

That’s why understanding your mortgage terms is critical.

Strategy Tip

Don’t just have prepayment privileges—use them intentionally.

For example:

• Apply bonuses or tax refunds

• Increase payments when income rises

• Stay consistent, even with small amounts

Final Thought

Your mortgage doesn’t have to last 25–30 years.

With the right strategy, you can take control and pay it down much faster.

Want a Plan to Pay Off Your Mortgage Faster?

Book your free strategy call:
👉 www.yourrateguy.ca