Sneaky ways to pay off your mortgage faster.

Canadians have long been known for their conservative spending (and saving) habits. Even in today’s credit-dominated culture, 86% of Canadian mortgage holders believe that it’s important to pay off their mortgage as quickly as possible, according to a recent Scotiabank study. The thing is, with living and housing costs escalating at a dramatic rate across the country, what we want to do – and what we’re financially capable of doing – are often two different things.

Very few Canadians have household budgets that can’t be trimmed, however. If you look closely, chances are there are monthly splurges and discretionary spending that could be going towards other things – like your mortgage. The secret is to put that cash towards the important areas before you know it’s even there.

One way to do that? Round up your mortgage payments – or increase them by 1% or 2% when you get your annual raise. This doesn’t have to amount to much – on a $500 biweekly payment, it could be as little as $5 – but it can shave serious years off your mortgage in the long run.

Invest in RRSPs – and put the annual tax return towards your mortgage. The quicker you do this – before the money has a chance to burn a whole in your bank account – the better. If you have other things to save for, such as an RESP or emergency fund, consider putting a percentage of your return into each savings account.

Accelerate! If you haven’t already synched your mortgage payments with your biweekly paycheques, do it now! It’s probably the easiest – and least intrusive – way to get an extra mortgage payment in each year.