How To Be A Debt Ninja
1.Apply your windfalls.
bonus? Selling off an asset? Rather than
splurge when you're flush with cash, put
some money down on your mortgage.
Last year, nearly a million Canadian
mortgage holders (975,000) made an
average $10,000 lump-sum payment to
their balance, according to the Canadian
Association of Accredited Mortgage
Professionals (CAAMP), wiping out a
total of $10 billion in mortgage debt.
2.Pay more than you have to.
Most lenders allow an increase of 10% to 20%
above and beyond your regular pay-
ments. Every extra dollar goes right
to your principal, in turn reducing
According to CAAMP's Spring 2013
Consumer Mindset survey, one in four
mortgage holders plan to increase the
amount of their payments this year.
3. No amount is too little.
Even a few dollars a month helps chip away
at debt, and you'll hardly miss it.
Two-thirds of mortgage holders
surveyed in a recent Scotiabank
Mortgage Landscape Study agreed it's
possible to pay off their mortgage faster
without changing their lifestyle. Most
respondents (59%) said they believe
adding $20 per month to their mortgage
payment would have no impact on
4. Set a timeline on non-mortgage
Don't ignore the outstanding
balance on a credit line or home equity
loan. Calculate the monthly cost to pay
it off over 18 months, two years or
whatever timeline you set as a goal.
Canadians lowered personal debts by
2% in the first quarter of 2013, according
to a report by TransUnion, the biggest
decline since 2004.
5. Leave no expense unturned.
Underused gym membership? Costly
phone plan? Track your monthly household
spending and aim to cut down on your
biggest non-essential expenses.
We can find ways to help you save
money on your mortgage or determine
whether refinancing makes sense as part
of your debt-repayment strategy.
Looking for a Mortgage Broker you can trust? Contact Marjan Watt - 604.603.9119