While most mortgages today are amortized over 25 years, below are the tips that I give my clients who want to be mortgage free as quickly as possible. If you advise your clients to follow all the suggestions below, their mortgage’s amortization can be reduced by numerous years:

1) Never get an open mortgage at a fixed rate unless you plan on paying it off during the term. Today’s closed mortgages generally offer 10-20% prepayment privileges, and can usually be obtained at 1% or more off the posted rate. Open mortgages at fixed rates carry higher interest. Why pay higher interest unless you are going to exceed this 10-20% prepayment? You can always make bigger lump sum payments at renewal time with no penalty.

2) Use accelerated weekly, or bi-weekly payments. Both of these methods enable you to make 1 extra monthly payment a year – the effect of this alone reduces your amortization from 25 to less than 21 years.

3) Give your mortgage the same raise as you get each year. If your income goes up 10%, so should your mortgage payment. This extra increase in payment will go directly towards principal repayment.

4) Give your mortgage a portion of any bonus or extra income. If you spend 30% of your income on your mortgage, then 30% of extra income should also go to your mortgage in the form of a prepayment. This bonus portion will go straight towards principal repayment.

5) Keep your payments the same even if you renew at a lower rate. Since you know you can afford to pay at this level, don’t decrease your payment when you negotiate a lower rate. The difference in payments between your new rate and the old rate will go directly to the principal.

6) Use your income tax return to put a lump sum payment towards your mortgage. This is extra money that is not used in your monthly budget.

7) Use extra money from your budget. Most financially sound people have a budget that they live by, if you have a little bit extra then apply it to your mortgage. Prepayments can be as little as $100.

8) Round up your mortgage payments. Why not round off that $656 bi-weekly to $660, or $675?

9) Consider a variable rate mortgage. While the fluctuation will keep some people awake at night, those who can endure the rate adjustments save money over time.

10) Seek independent financial advice. While some bankers do look out for your best interest, they work for the bank and not you.

I know that these steps take discipline and dedication, but the old adage still holds true - a penny saved is a penny earned! Getting rich isn’t about making lots of money – it’s about spending less than you make. Just think of what you can buy when your mortgage is all gone.

Calum Ross is one of Canada’s top ranked mortgage advisors. He has appeared on Canada AM, Investment Television, Report on Business Television, City TV, is an industry speaker and mortgage columnist. He holds both a B.Comm and MBA in Finance.