What pre-payment privileges does my lender offer? The easy answer is that major lenders in Canada, I think have very generous pre-payment privileges, anywhere from ten to twenty percent of your annual mortgage balance. I think the more important question is, in my experience most people do not take advantage of any prepaid privileges. So it seems odd to use that as a point of reference in terms of choosing which lender I am going to use. I think what is more important is having a strategy or plan in place such that you are being reminded to take advantage of your prepayment privileges.  Again, in my experience when people have a few hundred or a thousand dollars sitting around it doesn’t generally ever enter their mind to put that against their mortgage.

At Canada Mortgage Direct, because of our online dashboard software system we were continually reminding you about the benefits and virtues and probing you to put that money, anything, a hundred dollars, a couple hundred dollars, against your mortgage will make massive differences for you in the long term.

One other quick point, many of the major lenders also have restrictions such as you can only make one lump sum payment per calendar year on the anniversary date. I don’t think that is very helpful but a mortgage professional with more options available to them will be able to match you up with a lender that will allow you to put frequent payments against your mortgage, which I think is more workable for people.

Thanks for watching.

If you would like more information on this or other mortgage related topics contact Canada Mortgage Direct in one of the following ways:

Visit our website at CanadaMorgageDirect.com.

You can phone our office: 403-250-2100

Or you can email us at Save@CanadaMortgageDirect.com

We would also like to invite you  to the Canadian home Buyers Academy and you can visit us there at the CanadianHomeBuyersAcademy.com

Thanks again!

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