How to Save Thousands in Interest and Pay Your Mortgage Off Faster

There are a few easy ways to make extra principal payments that can save you a fortune in interest and get you mortgage-free sooner than you thought possible. In our current 2026 market, where every bit of savings counts, these simple strategies can make a massive difference.

Here are a few ways you can take control of your mortgage:

1. Round your monthly payment up

This is a simple strategy that can save you a fortune and drastically reduce the time you're in debt. For example, if your mortgage payment is $3,240 a month, rounding it up to $3,500 might not feel like a huge stretch, but that extra $260 goes directly toward your principal.
• The Result: On a typical GTA mortgage, a small monthly "top-up" like this can shave 5 to 7 years off your mortgage and save you over $60,000 in interest over the life of the loan.

2. Use your tax refund for a one-time pre-payment

Most of us look at a tax refund as "bonus money," but putting it toward your house is the smartest move you can make. If you get a $2,000 refund and apply it as a lump-sum payment to your mortgage, you are effectively "killing" the interest that would have been charged on that $2,000 for the next 20 years.
• The Result: Doing this consistently once a year can shorten your mortgage by nearly two years. It's an easy way to use money you already have to build equity faster in places like Mississauga or Oakville.

3. Switch to a 15-year amortization if you can

If your income has grown or you’re renewing your mortgage in Peel, Halton, or Waterloo, consider shortening your timeline. While most people go for a 25 or 30-year mortgage to keep payments low, a 15-year mortgage will save you an incredible amount of money.
• The Result: Your monthly payment will be higher, but you’ll pay roughly half the total interest compared to a 30-year term. In many cases, the interest savings alone are enough to buy a second property or fund your entire retirement.

4. Choose "Accelerated" Bi-Weekly payments

This is a "set it and forget it" trick. Instead of paying once a month, you pay every two weeks. Because there are 52 weeks in a year, you end up making 26 half-payments, which equals 13 full payments instead of 12.
• The Result: You won't even notice the extra payment leaving your account, but you’ll pay off your mortgage about 3 years sooner just by changing the schedule.

The Bottom Line
You don't need a massive windfall to become mortgage-free. Using these small, consistent strategies is the easiest way to keep more of your hard-earned money and stop giving it to the banks.

Want to see how these numbers look for your specific home in Toronto & the GTA? I can connect you with my network of local mortgage pros in Peel, Halton, or Waterloo to see which strategy saves you the most.

Click here for my "FREE Buyer's Guide" or here for my "FREE Seller's Guide" or here to "View Properties" or shoot me a message at 416-830-0165 to set up a strategy call!