| Selecting an Amortization Period
In many cases, you can select an amortization period of up to 35 years (30 years in Quebec). Although a 25-year amortization period is a common choice, it’s not your only choice. A shorter amortization period can save you interest costs.
Prepayment Privileges
Use our payment calculator to see how our prepayment privileges can save you money over the life of your mortgage.
Double-up payments: Pay twice your regular mortgage payment on any payment date. This surplus is applied directly against the principal balance of your mortgage and saves interest costs.
Increase payments by 15 per cent: Once each calendar year, you can increase your regular mortgage payment by up to 15 per cent. This saves you interest and helps you build up home equity faster.
Annual payment: Pay up to 15 per cent of the original principal balance in a lump sum, once annually.
For example, on a $100,000 mortgage:
| |
Payment |
Interest Paid |
Interest Savings* |
Mortgage Free |
Regular payments |
$894.49/month |
$168,347 |
$0 |
25 years |
Increased payments |
$1,200/month |
$ 68,334 |
$ 100,013 |
11 years,
9 months |
Annual payment |
$15,000 at end of first year** |
$85,942 |
$82,405 |
16 years |
* Savings assume interest of 10 per cent for 25 years
** Regular payments of $894.49 continued after annual payment
Amounts shown are approximations only and are intended solely for educational purposes. Please consult with a London Life Mortgage Planning Specialist to see how our different payment options might fit your budget. Actual mortgage applications are subject to approval and London Life lending criteria. |
