Scotiabank Be Mortgage-Free Faster – Whiteboard

Your home where you live, your sanctuary. It’s also your biggest investment. It’s
always there for you when you need it but what about your mortgage? What if you
could pay your mortgage off earlier and faster? You could save tens of thousands
in interest and free up your money for things you really need, like your child’s
education or your retirement. There are lots of smart ways to approach
it. You could take years off your mortgage by making small changes like
changing your payment frequency from monthly to bi-weekly, matching a payment
or even increasing your payment by say fifty dollars a year for the next five
years. It’s amazing what even small changes to the way you pay your mortgage
can have on the amount of interest you can save. Now, let’s take the average Canadian mortgage of two hundred thousand dollar amortized over 30 years. By switching to a weekly or bi-weekly
payment the average Canadian would pay off their mortgage more than four years sooner and save over twenty three thousand dollars in interest. Sounds pretty good right? You can also make extra lump sum
payments, the extra payments go directly to the principal rather than being split
between principle and interest. Let’s say you paid an extra five hundred dollars
every year and you also made small increases to your bi-weekly payments of
say two percent, by making both of these small changes you would shave off a
combined total of over eleven years from your thirty-year mortgage and save a
total of almost fifty three thousand dollars in interest. It’s almost enough to make you start
liking math…sort of. The cornerstone of your borrowing plan
should be the Scotia Total Equity Plan or STEP, which gives you the
flexibility you need for borrowing now and in the future. It not only lets you
split your mortgage into fixed and variable rate solutions or between short
and long-term solutions, you can also add lines of credit, credit cards and other borrowing
products as your needs change. With STEP, you may never have to apply for credit again. Why not start by talking to a Scotia
advisor today about some more ideas on paying off your mortgage faster and
saving with a plan that works best for you.

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