Pay Down Your Mortgage Faster

Four ways to pay down your mortgage faster

Prepayment privileges are already built into your mortgage^* – choose how and when you use them based on what makes sense for you.

Accelerated payments

Increase each mortgage payment slightly, essentially making the equivalent of 13 months' worth of payments annually. This is a simple way to pay down your principal faster.

Not available for monthly payments.

15% lump sum payments

Pay up to 15% of your original mortgage balance each anniversary year – either all at once or spread out across each payment.

Minimum $100 per payment.

Double up payments

Double up some or all your mortgage payments. You can start or stop at any time based on the cash flow you have available.

15% payment increase

Increase your regular payments by up to 15% each anniversary year. You can stop at any time but can only restart again the following anniversary year.

Available for fixed rate mortgages only.

*Review your mortgage documents to see which prepayment privileges you are eligible for.

HELPFUL TOOLS

Estimate how much you could save

Before you make any decisions, use our calculators and worksheets to see exactly how you can save on interest and what prepayment charges may apply.

Estimate your interest savings

How much can you save using your prepayment privileges? Log into My Mortgage® and use the scenario builder to find out.

Try the Scenario Builder

Estimate possible prepayment charges

Are you considering paying more than your prepayment privileges allow? Use the prepayment charge calculator to determine what it would cost you before you decide.

Calculate your prepayment charges

Understand the calculations

Still not sure? There are formulas for calculating prepayment charges. Our worksheet walks you through what’s involved, so you know what you’re paying and why.

Review the prepayment worksheet

Using the prepayment scenario builder

Compare which prepayment option could work best for you. The scenario builder lets you test how each option could affect your mortgage and interest savings.

Common questions about mortgage prepayment privileges

There is a lot to understand about prepayment privileges to make sure they work best for you. Here are the answers to the questions we hear most often.

What is the benefit of prepayments?

The full amount of any prepayment goes directly toward your principal balance. Paying down faster reduces your amortization, which then reduces your interest costs. To see exactly how much you could save with each prepayment option, use the Scenario Builder available in My Mortgage^®.

When can I make prepayments?

You can request to make a prepayment on any regularly scheduled payment date. Here is a breakdown of each prepayment privilege and key factors to consider:

15% prepayment increase: once you set this up, it cannot be stopped and restarted in the same anniversary year. For example, if you choose to increase your payment by only 10%, you cannot increase it by another 5% until your privileges reset on your anniversary date.
Double up payments: only match the principal and interest portion of your payments (they do not double ongoing lump sums, mortgage life insurance, home warranty or property tax components) and can be made on any regular payment date.
15% lump sum: can be scheduled for any regular payment date and for any amount within your anniversary year allowance (minimum $100 required).

What is an anniversary date?

Your anniversary date is the anniversary of the day your mortgage funded. It resets every 12 months.

How do I set up prepayments?

Log in to My Mortgage^® and request your desired prepayment privilege, select the frequency and the start date from the options listed. We will withdraw your prepayment as a separate transaction from the same bank account you use for your regular mortgage payments. If you need additional help, reach out to our support team through your My Mortgage^® account or call us at 1-888-488-0794.

Can I use all my prepayment privileges?

You can use one or all your prepayment privileges in each anniversary year. For example, you could increase your payments by 15%, double up your payment amount and add an ongoing lump sum payment. Watch this video to learn more.

Do I have to use my prepayment options?

No, they are optional. If you are curious, it’s a great idea to use the Scenario Builder on your My Mortgage^® account, so you can actually see how each prepayment option could affect your mortgage and interest savings.

Do accelerated payments affect my prepayment privileges?

Switching to accelerated payments does not impact your prepayment privileges. You can switch back to regular payments by submitting another request through your My Mortgage^® account. Accelerated payments are not available for monthly payments.

Do prepayment privileges roll over to the next year?

Your prepayment privileges reset each anniversary year and do not roll over.

Do my prepayment privileges change at renewal?

It depends on the type of mortgage you choose.

The 15% payment increase does not apply to adjustable-rate mortgages.
The lump sum option remains the same because it applies to your original mortgage balance.
The double up option is available, but with a new rate and balance, your payment will likely change.

Your original mortgage documents or renewal agreement will outline the details that are specific to you.

Real people. Real mortgages. Real value.

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The simple, stress-free way to manage your mortgage.

Manage your mortgage how you want, when you want. Log in to My Mortgage® at mymortgage.firstnational.ca – it’s easy to understand, easy to use and will save you time.

Pay down your mortgage faster.