January 18, 20263 min read
This decision can affect both approval and the cost of the mortgage for years. Many closed mortgages let borrowers accelerate repayment through lump sums, higher regular payments or both, without a penalty when they stay within the contract limits.
What changes the outcome
Here is what matters most:
- Check the annual lump-sum percentage and whether it is calculated from the original or current mortgage amount.
- Some lenders allow regular payments to be increased by a stated percentage or doubled.
- Extra principal payments reduce future interest because the balance falls sooner.
- Do not use emergency savings merely to maximize a prepayment privilege; liquidity still matters.
A broker can compare prepayment features if becoming mortgage-free faster is one of your goals.
Want this applied to your own numbers?
Call Phil Cragg at 866-349-4915 or request a written comparison.
Request a rate quote