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At the end of your term, when you renew or re-negotiate your mortgage, you may be able to obtain a lower interest rate, which will reduce your future payments.

An easy way to accelerate your mortgage payments is to maintain the same payments you were making in your previous term. The difference between your previous payments and your current (lower) payments will be applied as principal, to reduce your mortgage balance and help you pay your mortgage down faster.

This is one of the easiest ways to pre-pay your mortgage, since it does not affect your budget and spending habits (you accelerate your mortgage payments, while continuing to make the payments you were accustomed to making during your previous term).

The following example shows how your new, lower interest rate allows you to make pre-payments of $200 per month, while keeping the same payment you had during your previous term. 
 

Example – Keeping the same payments if you renew at lower rates

	Monthly	Accelerated bi-weekly
Interest rate Monthly payment Minimum payment required (given mortgage interest rate)	7.5% $1,100 $1,100	5.5% $1,100 $900
Difference - additional amount applied directly on principal to further reduce your mortgage balance	$0	$200