![]() ![]() Choosing an accelerated payment option instead of making a mortgage payment once a month, means you'll be making the equivalent of one additional monthly payment each year - helping you pay your mortgage off sooner. A great start is to choose weekly or bi-weekly accelerated payments. If paying your mortgage off faster is something that's on your mind, it's important to take time to look at the options available to make that happen. So if this is something you want to take advantage of, or you are interested in knowing a little more about it, just give us a call! Close Depending on the type of mortgage you have there could be some restrictions. If you chose to skip this payment, and did not pay it back, you could pay over $2,000 in additional interest payments over the entire mortgage. This would be the amount you could be eligible to skip in a year. As an example, if you have a $100,000 mortgage, with a rate of 6%, with an amortization of 25 years, your monthly principal and interest payment would be approximately $639.81. One thing you need to keep in mind is that you may significantly increase your interest costs over the life of your mortgage, so it's important to carefully evaluate your financial situation and priorities with us before exercising this option. And if your circumstances change again, and if you wish, you can repay your skipped payment anytime during the term of your mortgage. Instead, any skipped interest is added to the principal balance. There is no fee for this option, and your payments won't change during the term of your mortgage. You will still be responsible for paying your usual HomeProtector insurance premiums and property tax installments, where applicable. That means you can skip up to four consecutive weekly payments, or up to two consecutive bi-weekly or semi-monthly payments. You can skip one monthly mortgage payment or the equivalent of one monthly mortgage payment. ![]() How does it work? Well, once every 12 months you have the option to skip mortgage payments (principal and interest), provided that: The mortgage is not be in arrears, and your current mortgage balance, together with the amount of the payments you wish to skip, does not exceed the original amount of your mortgage. ![]() With this option, you may be covered if you need to miss a payment or if you're unable to keep up with your payments because your financial circumstances have changed. With an RBC mortgage, we have you covered with our flexible payment options. Sometimes it affects our finances or cashflow negatively. We all run into periods in our life where the unexpected happens. Visiting our website you can see all the different options to help pay your mortgage off even faster. Therefore you're putting that 10% right to your principal payment and reducing those overall mortgage costs. So for example, if you had a $200,000 mortgage, you have the ability to put a $20,000 lump sum directly to your principal every single year. This lump sum is 10% of your initial value of your mortgage. Another option available is to put 10% down yearly as a lump sum payment directly to your principal. Those additional funds going right to your principal reducing your overall amortization period. For example, if your bi-weekly payment is $1,000 you can increase that payment by an additional $100 to $1,000. From your original amount you can add on $100 up to the exact amount of your bi-weekly or monthly payment. The double up option allows you to increase your monthly or bi-weekly payments. So that's one payment out of your entire year. One double up payment can actually save you tens of thousands of dollars of interest over the course of your mortgage. One of the simplest options is to actually do a double up payment. For instance, if you come into a lump sum amount of money or you get a raise, or your finances change at all, we could help you change your mortgage payments in order to pay that mortgage off even faster. Here at RBC we have many flexible payment options to help make that dream a reality. ![]() Being mortgage free is a dream of many Canadians. ![]()
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