3. Increasing the amount of your paymentsMost lending institutions will allow you to increase the amount of your mortgage payments. Some institutions allow an increase once a year; others, only once per term.
The increase allowed varies by lending institution and type of mortgage and can be up to 25 per cent.
For example: If your current mortgage payment is $1,000 per month, you may be able to increase it to $1,200 per month (i.e., $1,000 × 20% = $1,200). The extra portion of the payment is applied as principal against the outstanding balance of your mortgage and accelerates your mortgage repayment.
The disadvantage is that this increase may be permanent (depending on the lending institution, it may be difficult to bring your payments back to their original amount). You should therefore make sure that you can handle new, higher payments until the end of your mortgage term.
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