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  • Writer's pictureNeil Joseph

Achieving Mortgage Freedom: Strategies to Pay Off Your Mortgage Early


Achieving Mortgage Freedom - Strategies to pay off your mortgage early

Owning a home is a significant milestone in one's life, but the burden of a mortgage can loom large. For many, the dream of being mortgage-free is a beacon of financial freedom and security. If you're one of those individuals eager to pay off your mortgage ahead of schedule, you're not alone. I would in fact encourage everybody to pay off the mortgage on their primary home at the earlier possible as the true cost of the mortgage is hidden from most.  Fortunately, with determination and strategic planning, this aspiration is entirely achievable. Let's explore some effective strategies to help you become mortgage-free sooner than you ever thought possible.


  1. Increase Your Monthly Payments: One of the most straightforward approaches to pay off your mortgage early is to increase your monthly payments. Even a small bump in your payment can make a substantial difference in the long run. Consider allocating any extra funds, such as bonuses or tax refunds, towards your mortgage payment. Every additional dollar you contribute goes directly towards reducing your principal balance, accelerating your journey to mortgage freedom.

  2. Make “Accelerated” Biweekly Payments: Instead of making monthly payments, switch to a biweekly payment schedule and choose the “accelerated” option. By doing so, you'll end up making the equivalent of an extra monthly payment each year.  The payment amount will be roughly 8% higher than the “regular” bi-weekly option. Over time, this consistent effort will significantly reduce your mortgage term and save you thousands in interest payments.

  3. Refinance to a Shorter Term: Refinancing your mortgage to a shorter term, such as 15 or 20 years, can help you pay off your loan much faster. Although your monthly payments will increase, the interest savings over the life of the loan can be substantial.

  4. Make Lump Sum Payments: Whenever you come into extra money, whether it's a work bonus, inheritance, or a sizeable tax return, consider making a lump sum payment towards your mortgage. This infusion of funds directly reduces your principal balance, saving you interest and shortening your repayment term.

  5. Cut Expenses and Redirect those Savings: Take a close look at your budget and identify areas where you can cut back on expenses. Whether it's dining out less frequently, canceling unused subscriptions, or finding more cost-effective alternatives for daily expenses, every dollar saved can be redirected towards your mortgage payment.

  6. Consider Downsizing: If your current home is more than you need or if you're open to a change in lifestyle, downsizing to a smaller, more affordable property can provide you with a significant lump sum to put towards paying off your mortgage. Additionally, a smaller mortgage on a less expensive home can mean lower monthly payments, allowing you to pay off the loan more quickly.

  7. Generate Additional Income: Explore opportunities to generate additional income outside of your primary job. Whether it's freelancing, starting a side business, or renting out a portion of your property, the extra cash flow can be earmarked towards your mortgage payments, accelerating your progress towards being mortgage-free.

  8. Implement Smith Manoeuvre: This is a powerful mortgage conversion strategy which allows homeowners to pay down the mortgage faster without having to forgo the opportunity to build an investment portfolio (stocks, bonds, real estate, etc.).  In addition, this strategy can generate meaningful tax refunds each year to enable further reduction in the mortgage balance. 

  9. Consult with a Financial Advisor: Seeking guidance from a financial advisor can provide you with personalized strategies and insights tailored to your unique financial situation. They can help you evaluate your options, optimize your budget, and develop a comprehensive plan to achieve your goal of paying off your mortgage early.


Becoming mortgage-free may seem like a daunting task, but with determination, discipline, and the right strategies, it's entirely within reach. By implementing these tactics and staying committed to your goal, you can pave the way towards a future free from the burden of mortgage debt, granting you the financial freedom and peace of mind you deserve.

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