Paying a mortgage with a credit card is possible but often requires workarounds and incurs fees, making it less attractive unless earning significant rewards or welcome bonuses. Services like Plastiq charge about 2.9% fees, so benefits must outweigh costs. Using credit cards this way risks high interest if balances aren't paid in full. It can help avoid late payments if you can pay your card on time, but relying on this method long-term is risky.
To pay off your mortgage faster, consider making biweekly payments to reduce interest and add an extra payment annually. Increase your payments yearly if possible, and make lump-sum prepayments using bonuses or tax refunds. Review your mortgage terms at renewal to negotiate better rates or switch lenders. Create a budget to find extra funds for payments, and celebrate milestones to stay motivated.
Buying a home costs $3,500–$5K monthly, depending on location and mortgage terms.
Each payment builds equity in a long-term asset that typically appreciates in value.
Homeowners gain stability, control, and tax advantages unavailable to renters.
Upfront expenses—down payment, closing fees, and maintenance—make buying a major financial commitment.
Market conditions and interest trends will shape affordability and investment potential ahead.
Evaluate your income, expenses, and savings early to set a realistic budget and ensure long-term financial stability.
Save at least 5–20% for a down payment to reduce mortgage insurance costs and overall loan burden.
Secure mortgage pre-approval to know your borrowing limit, lock in rates, and strengthen your buying position.
Research local markets and work with an experienced agent to find fair prices and negotiate effectively.
Account for closing costs, home inspections, and first-time buyer incentives to avoid surprises and maximize savings.
Understanding mortgage type, rate, and term helps avoid renewal shocks, penalties, and costly long-term financial commitments.
Clarify amortization period, down payment, and insurance requirements to balance affordability with total interest and borrowing costs.
Account for all closing costs, fees, and taxes upfront to prevent last-minute financial strain during home purchase.
Learn about prepayment options, penalties, and portability to maintain flexibility and avoid heavy costs if life plans change.
Renewal negotiation, broker compensation, and the mortgage stress test significantly affect borrowing power and long-term savings.
Breaking a mortgage early can incur significant penalties, typically either three months' interest or Interest Rate Differential (IRD) fees. Reasons for breaking a mortgage include financial changes, lower interest rates, job relocations, or personal circumstances like divorce. To minimize penalties, consider a variable or short-term fixed rate mortgage, prepaying when possible, and shopping around for lenders, especially smaller ones. Understanding the penalty calculations and lender policies before signing can help avoid high costs if you need to break your mortgage.
Paying off your mortgage early is achievable with strategies like making larger or bi-weekly payments, refinancing at lower rates, or applying lump-sum payments to principal. Additional methods include living below your means, renting out space, starting side hustles, downsizing, recasting your mortgage, exploring government programs, and seeking family help. Consistent effort and budgeting can accelerate mortgage freedom and save thousands in interest.
Self-employed individuals can successfully obtain a mortgage by demonstrating financial stability and trustworthiness. Key steps include providing two years of income proof through bank statements, tax Notices of Assessment, and maintaining a good credit score. Essential documents also include HST/GST payment proof, business licenses, and client contracts. It's crucial to manage tax deductions wisely, as excessive claims can lower perceived income. Engaging with a credit union can offer favorable mortgage options and additional banking benefits.
A larger down payment directly lowers your mortgage size and overall Real Estate borrowing costs.
Paying more upfront reduces long-term interest charges and may save thousands over the loan term.
Smaller down payments increase total repayment amounts, even when monthly payments appear manageable.
Home-buying programs and incentives can help first-time buyers accumulate larger down payments.
Planning early and minimising debt improves affordability and strengthens your Real Estate investment position.
In Canada, a home buyer’s minimum down payment depends on the property’s total purchase price.
Homes costing $500,000 or less require a minimum 5% down payment from personal savings.
Properties between $500,000 and $1.5 million need 5% on the first $500,000 and 10% thereafter.
Homes priced above $1.5 million require a full 20% down payment to qualify for a mortgage.
Buyers with weak credit or self-employment status may face higher down payment requirements.